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Demand for power to double and reach 215 GW by 2020

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Abhigna
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DUBAI, UAE: As the world is embracing renewable energy, the Gulf Cooperative Council (GCC) is also undergoing a major change in the wake of economic diversification programmes, the global recession and the Arab spring.

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Frost & Sullivan forecasts the demand for power to double and reach 215 Gigawatts (GW) by 2020.

Although the GCC possesses 22.5 per cent of the world's proven natural gas reserves and 35 per cent of the world's proven oil reserves, these conventional fuel sources are not expected to match the pace of escalating power demand in coming years, says Frost & Sulivam.

Thus, to combat this growing demand, the GCC is reconsidering its energy mix and looking to incorporate renewable energy as a significant contributor. As per current plans announced for renewable energy adoption, there is a 25GW potential for the same in the GCC up to 2020.

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Frost & Sullivan as supporter for World Future Energy Summit 2013 has authored a relevant Whitepaper titled "The Future for 'Green' in the GCC's Energy Sector".

The Whitepaper focused on the strong potential of renewables and smart grids in the GCC also emphasises on the need for a focused approach to create an environment that can nurture the growth of renewable energy and smart grids in the region.

Adoption of renewables is expected to yield multiple benefits for the GCC. Apart from industrial development, renewable energy will facilitate generating jobs for skilled personnel in this sector, and thereby reduce the high unemployment rate in the GCC, said the report.

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Currently, the GCC is burning up expensive oil and gas at highly subsidised rates to generate power. Renewable energy will help in potential export of these fuels at market rates, allowing for a windfall for the GCC countries, it added.

Highlighting the significance of moving away from conventional energy sources, Abhay Bhargava, Head, Energy & Power Systems Practice, Frost & Sullivan stated, "Utilising oil and gas alone, or diesel, has been an option to manage peak loads; however, it is not a long-term solution to meet energy demands. While nuclear energy is an option that can be considered, it is not feasible in the current decade. An exception, however, is the UAE, which has currently been implementing nuclear energy resources successfully."

"The demand-supply gap and abundant availability of sunlight as a resource in the GCC has led to solar power being considered as a viable energy source to meet emerging needs. In order to cater to peak loads, the GCC Governments have proposed new projects to mitigate ageing power infrastructure and support new diversification plans," added Bhargava.

The global energy mix is set to change with high growth anticipated for various renewable technologies. In the period 2010-2020, Frost & Sullivan forecasts wind energy to grow at a compound annual growth rate (CAGR) of 16-20 per cent, solar photovoltaic (PV)-based generation to grow at a CAGR of 25 per cent, and concentrated solar power (CSP) to grow at a CAGR of approximately 40 per cent.

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