Project Insight - Power Generation Construction Projects: Middle East and Africa

Project Insight - Power Generation Construction Projects: Middle East and Africa

Summary

To support the growth in renewable energy, a number of countries in the region are implementing a range of mechanisms, such as renewable portfolio standards (RPS), feed in tariffs (FiTs) or auctions, net metering and tax exemptions or subsidies. A noticeable observation in the MEA region is the growing popularity of the auction/tender mechanism to develop large-scale renewable projects. Countries such as Egypt, Iraq, Israel, Morocco, Qatar, Saudi Arabia, South Africa and the UAE have auction mechanisms for various renewable energy technologies. Others, including Algeria, Iran, Kenya, Nigeria and Tanzania, have already proposed the renewable auctions, and they are expected to announce them in 2019, while Ghana and the UAE have proposed net-metering schemes.

The report provides analysis based on CIC projects showing total project values for Middle East and Africa and analysis by stage and funding for the top ten countries. The top 50 projects are listed for the region giving country, stage, value and type of power generation construction. Values by ten types of project power categories are given, including solar, gas, nuclear and coal. Power generation capacity (MW) analysis is also provided. Ranked listings of the key operators for the sector are also provided showing the leading contractors, consulting engineers and project owners.

GlobalData is tracking 737 power generation construction projects in the Middle East and Africa, with a total value of US$959.9 billion, which includes projects from the announced to execution stages.

Scope

- The overall MEA projects pipeline is led by the planning stage, with a total value of US$484.3 billion, followed by projects in execution with US$231 billion. Assuming all projects proceed as planned, tracked projects spending will reach US$158.2 billion in 2020, and fall to US$76.06 billion in 2023.
- Joint public-private funding accounts for the highest proportion of projects, with 50.3%, followed by public funding with 26.2%. In terms of total privately funded projects, South Africa has the highest portion with 18.8%, while Egypt has the highest proportion of total public funded projects with 27.1%. Saudi Arabia has the highest proportion of total joint public and private funding, accounting for 44%. Over the last two decades, the private public partnership (PPP) model has become the most attractive financing mechanism for the Gulf States power market, with 80.8% of projects in the pipeline are funded through PPPs. The model also helps reduce strain on government finances in delivering complex engineering solutions and benefits from the most advanced technology solutions private power companies have to offer
- Based on the data available of tracked projects, the region should deliver 581.8GW of generating capacity, with Saudi Arabia responsible for 229.2GW (which includes 200GW from the SoftBank project), followed by Egypt and Nigeria with 38.9GW and 36.7GW respectively.

Reasons to buy

- Gain insight into the development of the power generation construction sector.
- Assess all major projects by value, start date, scope and stage of development in the Middle East and Africa region and top 10 countries to support business development activities.