gdpe0755icr- qatar power market outlook sample 1-9,22,26 … · qatar power market outlook to 2030,...

REFERENCE CODE GDPE0755ICR | PUBLICATION DATE DECEMBER 2014

QATAR POWER MARKET OUTLOOK TO 2030, UPDATE 2014 – MARKET TRENDS, REGULATIONS

AND COMPETITIVE LANDSCAPE

Qatar Power Market Outlook to 2030, Update 2014 – Market Trends, Regulations and Competitive Landscape 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

QATAR POWER MARKET OUTLOOK TO 2030, UPDATE 2014 – MARKET TRENDS, REGULATIONS AND COMPETITIVE LANDSCAPE

Executive Summary

Qatar Dependent on Natural Gas for Power Supply

Qatar is exclusively dependent on natural gas for

power generation, largely due to the abundant

supply of gas from the North Field, which yields

gas in volumes sufficient for export as well as

power generation. Oil reserves are comparatively

less substantial and all of the oil produced is

exported.

Increase in Power Consumption and Generation from 2000 to 2013

Annual power consumption in Qatar increased

from XX Terawatt hours (TWh) in 2000 to XX TWh

in 2013 at a Compound Annual Growth Rate

(CAGR) of XX% due to economic development,

which drove both residential and industrial

consumption. Annual power generation also

increased during the same period from XX TWh to

XX TWh at a CAGR of XX%.

Power Market, Qatar, Annual Power Consumption and Generation (TWh), 2000–2013

2000 2007 2013

Ann

ual p

ower

con

sum

ptio

n an

d ge

nera

tion

(TW

h)

Annual power consumption Annual power generation Source: GlobalData, Power Database [Accessed on November 3, 2014]

Qatar Targets XX% of Domestic Energy Supply from Renewables by 2024

The government has announced that it intends to

derive XX% of its energy requirements from

renewable sources by 2024 rather than relying

XX% on natural gas, as is currently the case. A

number of renewable projects have been

announced. In 2013, the government announced

the launch of a XX Megawatt (MW) solar power

project and a XX Gigawatt (GW) solar power

generation complex, which will be used to cool the

World Cup stadium in Doha, in 2022. The biggest

obstacle facing the development of renewable

power is its high cost of generation compared with

the free electricity from gas-based power plants

that is currently being supplied to Qatari citizens.

However, it is likely that, with government backing,

the share of renewable power in the country will

increase.


Table of Contents


1 Table of Contents

1 Table of Contents ....................................................................................................................... 3

1.1 List of Tables ...................................................................................................................... 6

1.2 List of Figures ..................................................................................................................... 7

2 Introduction ................................................................................................................................. 8

2.1 GlobalData Report Guidance .............................................................................................. 9

3 Qatar, Power Market, Snapshot ................................................................................................ 10

3.1 Qatar, Power Market, Macroeconomic Factors ................................................................. 10

3.2 Qatar, Power Market, Supply Security .............................................................................. 13

3.3 Qatar, Power Market, Generation Infrastructure ................................................................ 14

3.4 Qatar, Power Market, Transmission Infrastructure ............................................................ 14

3.5 Qatar, Power Market, Opportunities .................................................................................. 14

3.6 Qatar, Power Market, Challenges ..................................................................................... 15

4 Qatar, Power Market, Market Analysis ...................................................................................... 16

4.1 Qatar, Power Market, Supply Structure ............................................................................. 16

4.2 Qatar, Power Market, Key Market Players ........................................................................ 16

4.3 Qatar, Power Market, Financial Deals ............................................................................... 17

4.3.1 Deal Volume and Value Analysis, 2004–2013 ............................................................... 17

4.4 Qatar, Power Market, Demand Structure .......................................................................... 19

4.4.1 Consumption by Sector, 2013 ....................................................................................... 22

5 Qatar, Power Market, Regulatory Scenario ............................................................................... 23

5.1 Qatar, Power Market, Key Electricity Policies .................................................................... 23

5.1.1 Qatar, Power Market, Energy Policy and Regulatory Framework .................................. 23

5.1.2 Qatar, Power Market, Renewable Energy Policies ........................................................ 23

5.1.3 Qatar, Power Market, Energy Efficiency and Emission Laws ......................................... 23

5.2 Qatar, Power Market, Foreign Investment Scenario .......................................................... 24

6 Qatar, Power Market, Capacity and Generation Overview ........................................................ 26


Table of Contents


6.1 Qatar, Power Market, Cumulative Installed Capacity by Type of Power Plant, 2013 ......... 26

6.2 Qatar, Power Market, Cumulative Installed Capacity and Annual Power Generation, 2000–2030 .................................................................................................................................. 26

6.2.1 Cumulative Installed Thermal Capacity and Annual Thermal Power Generation, 2000–2030 ............................................................................................................................. 29

6.2.2 Cumulative Installed Renewable Capacity and Annual Renewable Power Generation, 2000–2030 ................................................................................................................... 32

7 Qatar, Power Market, Transmission and Distribution Overview ................................................. 35

7.1 Qatar, Power Market, Transmission Overview .................................................................. 35

7.1.1 Future Transmission Plans ............................................................................................ 36

7.2 Qatar, Power Market, Distribution Overview ...................................................................... 37

7.3 Qatar, Power Market, Grid Interconnection ....................................................................... 38

7.3.1 Electricity Import and Export Trends, 2010–2013 .......................................................... 39

7.4 Qatar, Power Market, Electricity Trading ........................................................................... 40

8 Qatar, Power Market, Competitive Landscape: Snapshot of Leading Power Generating Companies ............................................................................................................................... 41

8.1 Key Company in the Qatar Power Market: Qatar Electricity & Water Company Q.S.C. ..... 41

8.1.1 Company Overview ....................................................................................................... 41

8.1.2 Business Description ..................................................................................................... 41

8.1.3 SWOT Overview ........................................................................................................... 43

8.2 Key Company in the Qatar Power Market – Qatar Petroleum ........................................... 48



8.2.3 SWOT Overview ........................................................................................................... 49

8.3 Key Company in the Qatar Power Market – Marubeni Corporation ................................... 56



8.3.3 SWOT Overview ........................................................................................................... 57

9 Appendix................................................................................................................................... 65


Table of Contents


9.1 Market Definitions ............................................................................................................. 65

9.1.1 Power ............................................................................................................................ 65

9.1.2 Installed Capacity .......................................................................................................... 65

9.1.3 Electricity Generation .................................................................................................... 65

9.1.4 Electricity Consumption ................................................................................................. 65

9.1.5 Thermal Power Plant ..................................................................................................... 65

9.1.6 Hydropower Plant .......................................................................................................... 65

9.1.7 Nuclear Power............................................................................................................... 65

9.1.8 Renewable Energy Resources ...................................................................................... 66

9.2 Abbreviations .................................................................................................................... 66

9.3 Bibliography ...................................................................................................................... 67

9.4 GlobalData’s Methodology ................................................................................................ 68

9.4.1 Coverage ...................................................................................................................... 68

9.4.2 Secondary Research and Analysis ................................................................................ 68

9.4.3 Primary Research and Analysis..................................................................................... 69

9.5 Disclaimer ......................................................................................................................... 69


Table of Contents


1.1 List of Tables

Table 1: Power Market, Qatar, Gross Domestic Product ($bn), Population (million), and Annual Power

Consumption (TWh), 2000–2019 ................................................................................................. 13

Table 2: Power Market, Qatar, Leading Power Generation Companies (%), 2013 ..................................... 17

Table 3: Power Market, Qatar, Deal Value ($bn) and Deal Volume, 2004–2013 ........................................ 19

Table 4: Power Market, Qatar, Annual Electricity Consumption (TWh), 2000–2030 ................................... 21

Table 5: Power Market, Qatar, Electricity Consumption by Sector (%), 2013 ............................................. 22

Table 6: Power Market, Qatar, Cumulative Installed Capacity (GW) and Annual Power Generation (TWh),

2000–2030 .................................................................................................................................. 28

Table 7: Power Market, Qatar, Leading Active Thermal Power Units, 2013................................................ 29

Table 8: Power Market, Qatar, Cumulative Installed Thermal Capacity (GW) and Annual Thermal Power

Generation (TWh), 2000–2030 .................................................................................................... 31

Table 9: Power Market, Qatar, Cumulative Installed Renewable Capacity (GW) and Annual Renewable

Power Generation (TWh), 2000–2030 ......................................................................................... 34

Table 10: Power Market, Qatar, Transmission Line Length (Ckm), 2000–2020 ............................................ 36

Table 11: Power Market, Qatar, Planned Transmission Projects, 2013–2015 .............................................. 37

Table 12: Power Market, Qatar, Distribution Line Length (Ckm), 2000–2020 ............................................... 38

Table 13: Power Market, Qatar, Annual Electricity Imports and Exports (TWh), 2010–2013 ......................... 39

Table 14: Power Market, Qatar, Qatar Electricity & Water Company Q.S.C., SWOT Analysis ...................... 43

Table 15: Power Market, Qatar, Qatar Petroleum, SWOT Analysis .............................................................. 50

Table 16: Power Market, Qatar, Marubeni Corporation, SWOT Analysis...................................................... 57

Table 17: Abbreviations .............................................................................................................................. 66


Table of Contents


1.2 List of Figures

Figure 1: Power Market, Qatar, Gross Domestic Product ($bn) and Population (million), 2000–2019 .......... 11

Figure 2: Power Market, Qatar, Annual Power Consumption (TWh), 2000–2019 ........................................ 12

Figure 3: Power Market, Qatar, Leading Power Generation Companies (%), 2013 ..................................... 17

Figure 4: Power Market, Qatar, Deal Value ($bn) and Deal Volume, 2004–2013 ........................................ 18

Figure 5: Power Market, Qatar, Annual Electricity Consumption (TWh), 2000–2030 ................................... 20

Figure 6: Power Market, Qatar, Electricity Consumption by Sector (%), 2013 ............................................. 22

Figure 7: Power Market, Qatar, Cumulative Installed Capacity (GW) and Annual Power Generation (TWh),

2000–2030 .................................................................................................................................. 27

Figure 8: Power Market, Qatar Cumulative Installed Thermal Capacity (GW) and Annual Thermal Power

Generation (TWh), 2000–2030 .................................................................................................... 30

Figure 9: Power Market, Qatar, Cumulative Installed Renewable Capacity (GW) and Annual Renewable

Power Generation (TWh), 2000–2030 ......................................................................................... 33

Figure 10: Power Market, Qatar, Annual Electricity Imports and Exports (TWh), 2010–2013 ......................... 39



Introduction

2 Introduction

Qatar, a sovereign Arab state in the Middle East region, is one of the most prominent natural-gas-

based economies in the Middle East. It is classified as a high-income country with the distinction of

having one of the highest levels of per-capita energy consumption of the Gulf Cooperation

Countries (GCC). Since gaining independence in 1971, the former British colony has been ruled as

an absolute monarchy.

Qatar’s Gross Domestic Product (GDP) at constant prices was $XX billion in 2013 with an

estimated growth rate of XX%. Qatar remained largely unaffected by the recession in 2008 and

2009; the economy in fact grew at an average XX% annual growth rate and continued to benefit

from substantial investment in the hydrocarbon sector. Government authorities also invested

directly in domestic banks in order to protect the local banking sector from the financial crisis.

The industry sector accounted for an estimated XX% of total GDP in 2013, while the services

sector accounted for XX% and the remaining XX% came from the agricultural sector. Oil and

natural gas exports are the country’s primary sources of revenue, as it possesses substantial oil

and gas reserves. Qatar ranks third in the world in terms of natural gas reserves, which are

estimated to exceed XX trillion cubic feet (tcf), accounting for XX% of the world’s total gas

reserves. The country also possesses proven oil reserves in excess of XX billion barrels, which is

expected to produce continued output for the next 57 years. The government has started to focus

on increasing private and foreign investment in the country’s non-energy sectors in order to ensure

diversification of revenue generation sources (CIA, 2014).

Since the privatization of the electricity market in 2000, Qatar General Electricity and Water

Company (Kahramaa) has been responsible for regulating and maintaining the supply of electricity

and water. Qatar Electricity and Water Company (QEWC) is a semi-public company responsible for

all of country’s power-generating units. Gas is the only fuel used for power generation and is likely

to remain the predominant fuel in future, despite the government’s plans to invest in the

development of renewable energy technologies, especially solar. A number of research studies are

currently being conducted, with the aim of ensuring the diversification of Qatar’s power mix in the

future.



Introduction

2.1 GlobalData Report Guidance

The executive summary summarizes key growth trends in the Qatar’s power market.

Chapter three provides a snapshot of the key parameters that affect Qatar’s power sector, as

well as key points about the power market.

Chapter four provides a power market analysis for Qatar.

Chapter five provides details of the regulatory scenario for the power market and the inward

foreign investment scenario in Qatar.

Chapter six provides information regarding Qatar’s cumulative installed capacity and annual

generation trends, as a whole and by individual generation source.

Chapter seven describes the power transmission and distribution infrastructure in Qatar and

includes information on interconnectors with neighboring countries. The section also covers

electricity imports and exports and upcoming grid-related projects.

Note: all 2013 market values provided in the report are estimates, except where actual data were

available.



Market Analysis

4.4.1 Consumption by Sector, 2013

The residential sector was the largest electricity-consuming sector in the country in 2013 with an

estimated XX% share of consumption, followed by the industrial sector with XX% and the

commercial sector with XX%. Other smaller sectors contributed a combined XX% share of Qatar’s

total electricity consumption in 2013.

Figure 6: Power Market, Qatar, Electricity Consumption by Sector (%), 2013

Residential

Industrial

Commercial

Others

Source: GlobalData

Table 5: Power Market, Qatar, Electricity Consumption by Sector (%), 2013 Sector Share

Residential

Industrial

Commercial

Other

Source: GlobalData



Capacity and Generation Overview

6 Qatar, Power Market, Capacity and Generation Overview

6.1 Qatar, Power Market, Cumulative Installed Capacity by Type of Power Plant, 2013

Power generation in Qatar is carried out exclusively by gas-based thermal power plants, which

amounted to XX GW in terms of power generation capacity in 2013.

6.2 Qatar, Power Market, Cumulative Installed Capacity and Annual Power Generation, 2000–2030

Qatar’s cumulative installed capacity amounted to XX GW in 2000, increasing to XX GW in 2013 at

a CAGR of XX%. From XX GW in 2014, it is expected to increase at a CAGR of XX% to reach XX

GW in 2030.

Qatar’s installed capacity is derived wholly from thermal power, specifically gas-based power

generation. It is the largest exporter of natural gas in the world due to the immense deposits of

natural gas at its disposal, which it uses for power generation as well as for international exports.

The country’s oil reserves, which are less extensive, are exported. Qatar does not currently

generate any electricity from coal, hydropower, or nuclear power. The government has plans to

increase the share of renewable sources in its power mix in future.

Qatar’s annual power generation amounted to XX TWh in 2000, which increased to XX TWh in

2013 at a CAGR of XX% and is expected to increase to XX TWh in 2014 and XX TWh in 2030 at a

CAGR of XX%.




Figure 7: Power Market, Qatar, Cumulative Installed Capacity (GW) and Annual Power Generation (TWh), 2000–2030

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Ann

ual p

ower

gen

erat

ion

(TW

h)

Cum

ulat

ive

inst

alle

d ca

paci

ty (G

W)

Cumulative installed capacity Annual power generation Source: GlobalData, Power Database [Accessed on November 24, 2014]




Table 6: Power Market, Qatar, Cumulative Installed Capacity (GW) and Annual Power Generation (TWh), 2000–2030

Year Cumulative installed capacity Annual power generation

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Source: GlobalData, Power Database [Accessed on November 24, 2014]


Appendix


9 Appendix

9.1 Market Definitions

9.1.1 Power

Power refers to the rate of production, transfer or energy use, usually related to electricity. It is

measured in Watts (W) and often expressed in kilowatts (kW) or Megawatts (MW). It is also known

as real power or active power.

9.1.2 Installed Capacity

Installed capacity refers to the generator’s nameplate capacity as stated by the manufacturer, or

the maximum rated output of a generator under given conditions. It is given in Megawatts (MW) on

a nameplate affixed to the generator.

9.1.3 Electricity Generation

Electricity generation refers to the process of generating electricity from other forms of energy. It

also refers to the amount of electricity produced, expressed in Gigawatt hours (GWh).

9.1.4 Electricity Consumption

Electricity consumption is the sum of electricity generated, plus imports, minus exports and

transmission and distribution losses. It is measured in Gigawatt hours (GWh).

9.1.5 Thermal Power Plant

A thermal power plant is one in which turbine generators are driven by burning fossil fuels.

9.1.6 Hydropower Plant

A hydropower plans is one in which the turbine generators are driven by falling water.

9.1.7 Nuclear Power

Nuclear power is the electricity generated by the use of thermal energy, released from the fission of

nuclear fuel in a reactor.


Appendix


9.1.8 Renewable Energy Resources

Renewable energy resources are those that provide energy that is naturally replenished but limited

in the amount of energy available per unit of time. Biomass, geothermal, solar, small hydro and

wind are examples of renewable resources.

9.2 Abbreviations

Table 17: Abbreviations bcf billion cubic feet

CAGR Compound Annual Growth Rate

CCGT Combined-Cycle Gas Turbine

Ckm Circuit kilometer

Cogen Cogeneration

CSEE Center for Sustainable Energy Efficiency

DCC Distribution Control Centre

DNI Direct Normal Irradiance

GCC Gulf Co-operation Countries

GDP Gross Domestic Product

GW Gigawatt

GWh Gigawatt hour

IWPP Independent Water and Power Project

Kahramaa Qatar General Electricity and Water Company

kV kilovolt

kWh kilowatt hour

LNG Liquefied Natural Gas

MW Megawatt

NCC National Control Center

OPEC Organization of the Petroleum-Exporting Countries

PV Photovoltaic

QEWC Qatar Electricity and Water Company

T&D Transmission and Distribution

tcf trillion cubic feet

tcm trillion cubic meters

TWh Terawatt hour

Source: GlobalData


Appendix


9.3 Bibliography

AMEinfo (2013). Qatar to install energy-saving devices at mosques, public schools.

Mediaquest FZ LLC, August 19, 2013. Available at: http://www.ameinfo.com/qatar-install-

energy-saving-devices-mosques-public-351719 [Accessed on November 20, 2014]

BP (2014). BP Statistical Review of World Energy 2014. Available at:

http://www.bp.com/en/global/corporate/about-bp/energy-economics/statistical-review-of-world-

energy.html [Accessed on November 20, 2014]

CIA (2013). Qatar: The World Factbook. Central Intelligence Agency. Available from:

https://www.cia.gov/library/publications/the-world-factbook/geos/qa.html [Accessed on

November 20, 2014]

EIA (2013). Qatar: Overview. U.S. Energy Information Administration, 2013 Available from:

http://www.eia.gov/countries/cab.cfm?fips=QA [Accessed on November 20, 2014]

Gulf Times (2013). “Qatar sets new energy-saving standards for air-conditioners”, The Gulf

Times, August 4, 2013. Available at: http://www.gulf-times.com/qatar/178/details/361733/qatar-

sets-new-energy-saving-standards-for-air-conditioners [Accessed on November 20, 2014]

IMF (2014). World Economic Outlook Database, April 2014 [database]. Available at:

http://www.imf.org/external/pubs/ft/weo/2014/01/weodata/download.aspx [Accessed on

November 20, 2014]

MEED Insight (2012). Qatar General Electricity & Water Corporation (Kahramaa). Middle East

Business Intelligence. Available at: http://www.meed.com/Journals/2012/05/03/q/u/w/Profile-

sample.pdf

Tuttle R (2013). “Qatar Creates $1 Billion Foreign Water and Power Investment Arm”,

Bloomberg LP, May 20, 2013. Available at: http://www.bloomberg.com/news/2013-05-20/qatar-

creates-1-billion-foreign-water-and-power-investment-arm.html [Accessed on: September 5,

2013]


Appendix


9.4 GlobalData’s Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with

backgrounds in marketing, market research and consulting in the power industry, and advanced

statistical expertise.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and

the Strategic and Competitive Intelligence Professionals (www.scip.org).

The following research methodology is followed for all country outlook reports.

9.4.1 Coverage

This report gives detailed information on Qatar’s power market. It examines Qatar’s power market

structure and provides historical and forecast numbers for generation, capacity and consumption

up to 2030. The report provides insights on the market’s regulatory structure, import and export

trends, competitive landscape and leading active and upcoming power projects.

9.4.2 Secondary Research and Analysis

The capacity, generation and consumption data is collected and validated using a number of

secondary resources, including, but not limited to:

Government agencies, ministerial websites, industry associations, the World Bank, statistical

databases

Company websites, annual reports, financial reports, broker reports and investor presentations

Industry trade journals, market reports and other literature

GlobalData’s proprietary databases, including the Capacity and Generation Database, the

Power Plant Database and the Transmission and Distribution Database

Further to this, the following secondary information is collected and analyzed to project Qatar’s

power market scenario through to 2030, analyzing factors such as the following:

Qatar’s macro-economic scenario

Government regulations, policies and targets

Government and private sector investments


Appendix


Contract and deal announcements

Utility expansion plans

The sector’s historic track record

Other qualitative insights built through secondary research and analysis of company websites,

annual reports, investor presentations, industry and trade journals, and data from industry

associations.

9.4.3 Primary Research and Analysis

Secondary research is further complemented through primary interviews with industry participants

to verify and fine-tune the market numbers obtained through secondary research and get first-hand

information on industry trends.

The participants are drawn from a diverse set of backgrounds, including equipment manufacturers,

industry associations, government bodies, utilities, distributors, and academia. The participants

include, but are not limited to, C-level executives, industry consultants, academic experts, business

development and sales managers, purchasing managers, plant managers, government officials,

and industry spokespeople.

9.5 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, GlobalData.

This report is a licensed product and should not to be reproduced without prior permission.

gdpe0755icr- qatar power market outlook sample 1-9,22,26 … · qatar power market outlook to 2030,...

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