New Energy research report from Business Monitor International is now available from Fast Market Research
Boston, MA -- (SBWIRE) -- 06/03/2013 -- With Saudi Arabia sets to remain on a solid growth path through 2013 as the non-oil sector continues to expand on the back of booming household expenditure and another strongly expansionary budget has been approved by the government, the short-term picture for the power sector is bright.
Similarly, a bright outlook for fixed investment and a supportive macroeconomic policy underpin our sanguine expectations for the medium term. We anticipate that the thermal sector will continue to be the main beneficiary of hefty investment plans. However, interest in nuclear and renewable sources is strengthening.
A projected fall in oil production should prove a net drag on economic performance, and our Country Risk team does not see the Saudi economy reaching the growth rates of previous years in 2013; real GDP growth of 4.1% is forecast for 2013, down from an estimated 6.8% in 2012. In comparative terms, Saudi's macroeconomic performance and its demographics continue to impress, with a combination of factors including reliance on energy intensive industries and poor levels of energy efficiency pushing up power consumption and putting significant pressure on Saudi Arabia's existing power generating capacity.
View Full Report Details and Table of Contents
Hence, while more bearish than the Saudi government, BMI remains of the opinion that these dynamics will underpin the government's attempts to improve on and enlarge the existing power infrastructure, continuing to support a healthy growth outlook for the country's power sector in the coming years. An outlook supported by the fact that:
- The country is already executing an extremely ambitious US$80bn expansion plan for power projects, with the Kingdom's Ninth Development Plan (2010-2014) aiming to raise generating capacity by 20.4 gigawatts (GW) by 2014. Even if BMI adopts a conservative stance and only 70% of the planned capacity comes online, our forecasts show that the country will be able to meet its commitments, with total installed capacity to reach just over 72GW by 2014.
- The Kingdom appears committed to develop nuclear capacity, with plans to invest US$100bn to build 17 nuclear reactors over the coming two decades to produce electricity. In February 2013, the Japanese government offered to provide assistance to the Kingdom in the construction of nuclear power stations in order to free up more oil for exports.
- BMI believes that the very strong track record in the development of power projects bodes well for nonhydro renewables expansion. Plans to tap renewable energy as a way to free more crude oil for export are progressively taking shape in the Kingdom, which now aims to channel US$109bn in investment to create a solar industry that generates a third of the nation's electricity by 2032.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Energy research reports at Fast Market Research
You may also be interested in these related reports:
- Pakistan Power Report Q2 2013
- Global Power Survey 2013-2014 - Market Trends, Marketing Spend and Sales Strategies in the Global Power Industry
- South Korea Power Report Q2 2013
- Slovakia Power Report Q2 2013
- Iran Power Report Q2 2013
- Brazil Power Report Q2 2013
- United Kingdom Power Report Q2 2013
- Chile Power Report Q2 2013
- Poland Power Report Q2 2013
- Venezuela Power Report Q2 2013