Growing energy demand in the GCC countries

Abstract

The energy sector in GCC countries plays a vital role in achieving economic and social development and contributing to the Gross Domestic Product (GDP). Furthermore, the energy sector plays a major role in meeting the water and food needs in these countries that have harsh climate conditions and water scarcity. However, the consumption of energy is high in the GCC relative to other developed countries and this is one of the key challenges faced by the GCC. Growing energy consumption will threaten exports, affect the economic diversification and may increase the energy waste. A diversification of the energy mix by including renewable sources presents an opportunity as it would free up part of the energy production for export as well as would reduce carbon dioxide (CO2) emission. Over the next ten years, it is expected that the population of the GCC countries will increase by more than 20%. This article provides estimate of demand for electricity and fuel used in the power plants for the next 25 years. The amount of carbons dioxide emission is estimated based on type and amount of fuel used. In order to reduce the dependency on the fossil fuel and reduce carbon emission a number of measures should be implemented that includes, utilization of renewable energy sources, adopting energy-efficient products and buildings, demand side management, and reforming the fuel prices. In fact, the GCC countries have already started implementing some of these measures toward a more sustainable energy future.

Keywords

• drivers of energy demand
• energy reform
• climate conditions
• policies
• gcc