Evolving Middle Eastern power market
Posted in Energy
The Middle East power market, particularly in the Gulf Cooperation Council, is currently undergoing a transformation as the region shifts to more renewable energy.
The region has been attracting some of the lowest tariffs for electricity globally.
The GCC countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Advances in the procurement process for independent power projects have led to increased efficiencies throughout each stage of project development.
Rising electricity demand and the ongoing energy transition suggests that IPPs will continue to be at the forefront of government strategy. There are also indications that certain states are looking ahead to an even more liberalized future through the adoption of spot markets.
The procurement model
The development model for IPPs has largely been similar across the Middle East. The government procuring authority prepares a list of pre-qualified bidders to whom draft project documents (such as the power purchase agreement, natural gas supply agreement and land lease agreement) are issued, together with...
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