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 (CO 2 ) 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.

GCC Countries’ Renewable Energy Penetration and the Progress of Their Energy Sector Projects

“…According to a study conducted by Bhutto et al [45] in 2014, the transfer to renewable energy technology would reduce fossil fuel consumption in GCC countries and address their environmental challenges [46]. The population growth and brisk economic expansion in the region, which is linked to the growth of energy-intensive industries such as petrochemical, aluminum and steel industries, led to increasing electricity consumption [45].…”

Policy Innovations and Rationale for Sustainable Energy Transition in the UAE

“…Electricity used to power residential and commercial buildings accounts for more than 70 percent of the total electricity consumed in the UAE today (Lin, Afshari, and Azar, 2018). The peak demand in the summer, due to increasing rates of space cooling, is often twice the off‐peak summer consumption and three times the peak winter consumption (Al‐Badi and AlMubarak, 2019:489). Authorities have set an ambitious target of reducing residential and corporate electricity consumption by 40 percent as part of the demand‐side management initiative, which is designed to encourage consumers to optimize their energy use.…”

Diagnoses for Potential Enaction of Water–Energy Nexus in Green Building Rating Systems: Case Study of the Pearl Rating System of United Arab Emirates

“…Data regarding the energy required for wastewater treatment in the UAE is unavailable. According to some international estimates, the energy intensity of primary treatment is 0.1-0.3 KWh/m 3 , and for secondary treatment, the estimate ranges between 0.275 and 0.59 KWh/m 3 [44]. It is imperative to note that since water and energy are mostly produced in co-generation plants, as in many desert regions, proactively considering this fact of the nexus in the sustainability rating systems would also facilitate financial and economical savings.…”

“…The United Arab Emirates (UAE), similar to many fast-growing economies, has been indexed as one of the countries producing the highest carbon footprints in the world [1,2]. Researchers have revealed that electricity consumption has doubled in the last ten years, and the main contributing factor to this surge is attributed to rapid urbanization, population, and economic growth in the country [3]. Energy consumption has been increasing at an annual rate of 4% and has reached 5% in 2020.…”