Power surge

The region is investing heavily in power and water projects.

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New power, water, and energy projects valued at $180bn are underway or at the planning stages in the Middle East, with the UAE forging ahead with 20 projects worth $34.2bn

The UAE’s energy push is being spearheaded by the $20bn nuclear power plant in Abu Dhabi, which began construction late in 2011. This landmark project has meant that the UAE will be one of the most active markets in the power, water and energy sectors over the next two years, at a time when power demand across all GCC countries is expected to grow 8% to 10% a year.

Towards the end of November last year it was announced that engineering consultancy Atkins had been appointed to act as technical adviser for the UAE’s peaceful nuclear-energy programme, providing an independent technical assessment for the project. The programme will deliver four new reactors under the leadership of the Emirates Nuclear Energy Corporation (ENEC).

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Atkins’ consultancy will inform the investment decision of the private lenders, a combination of Export Credit Agencies (ECAs) and commercial banks.

Martin Grant, MD of Atkins’ Energy business, said: “This contract is a significant step forward in the internationalisation of our nuclear business. It marks progress towards our overall strategy to expand the Atkins Energy business into a truly worldwide service provider.”

Atkins has been contracted for the construction period of the four APR-1400 reactors procured from the South Korean consortium led by the Korea Electric Power Corporation (KEPCO) in 2009.

Until the reactors become operational (final schedules are dependent upon regulatory reviews and approvals), the company will monitor and report on ongoing construction and commissioning activities.

Atkins will establish a core team of experts in Abu Dhabi which will have the ability to draw on its specialists worldwide. Dominic Jermey, HM Ambassador to the UAE, added: “It is tremendous to see Atkins bringing the best of UK expertise in nuclear to the UAE new build programme.

“Atkins’ involvement from these early stages will foster even more sharing of knowledge and best practice between the UK and Middle East over the long term – an important component in finding the solutions to the growing demand for energy in this region.”

As part of the architect engineer consortium, Atkins is already providing full multidisciplinary design services for the International Thermonuclear Experimental Reactor (ITER) project in France. It continues to support the UK new build programme with work for EDF and Horizon.

Saudi Arabia holds the lion’s share of investment value in the region, due to the King Abdullah City of Atomic and Renewable Energy (KA-CARE), which begins construction in 2013. The Kingdom also has a further 15 projects worth nearly $9bn currently underway, or due to begin in 2012.

At the beginning of February it was announced that Siemens will supply key components for the IPP Qurayyah combined cycle power plant (CCPP) in Saudi Arabia in a contract valued over $1bn.

With an installed capacity of 4GW, it will be one of the world’s largest CCPPs, and will supply enough electrical energy to meet about one tenth of the country’s current power demand for its 28 million inhabitants. Commissioning of the total of six blocks is scheduled for 2014. The project consortium is led by the Saudi company ACWA Power with Samsung C&T and MENA fund as further members.