Dubai: The UAE is likely to face energy shortage as the power generating capacity of existing facilities in the region is inadequate and investments of at least $155 bn will be required over the next decade to meet soaring demands.

Water and power shortages of about 35 per cent are expected in Kuwait, Qatar and Saudi Arabia by 2010 while the UAE and Bahrain will face similar problems by 2012 and 2013 respectively, according to research by UAE-based infrastructure specialists, Septech Emirates.

"Energy consumption is on the increase not only in the region but across the world," said Ashruf Kamel, Vice President of Corporate Development at Septech Emirates in a statement.

"Infact, global net electricity consumption is expected to increase by a whopping 42 per cent by 2015 and an additional 1600 GW of power generating capacity is required to meet mounting demand," Kamel said.

With the growing population and mega scale industrial and real estate developments, demand for power is estimated to rise considerably.  "Financial institutions, private equity houses, investment banks and government investment authorities are now addressing the current and forecasted growth in the economy and how this increase will affect basic utilities like water, power and transportation," he said.

According to the report, in mid-2007,the total electricity production in the UAE was estimated at 19,220 MW compared to 9600 MW in 2001. And, according to industry estimates, this capacity is set to increase to 26,000 MW by 2010.

Source : PTI