ME E&R whitepaper 4

Perspectives

Energy on demand: the future of GCC energy efficiency

Managing scarcity for the future

In this whitepaper, Deloitte Middle East tackles the topic ‘Energy Efficiency’, which revolves around reducing energy waste: this can be both on the demand side through power demand management and on the supply side using a host of technologies to improve efficiency in power generation and distribution. So how do the GCC countries stand in relation to these perspectives? Are there potential gains from using or producing energy more efficiently?

Energy on demand: the future of GCC energy efficiency ‘Energy Efficiency’ revolves around reducing energy waste: this can be both on the demand side through power demand management and on the supply side using a host of technologies to improve efficiency in power generation and distribution. So how do the GCC countries stand in relation to these perspectives? Are there potential gains from using or producing energy more efficiently?

In 2008, each person in the GCC countries consumed on average 9.650 TWh of electricity against a global average of 2.782 TWh and a Middle East average of 3.384 Twh. This consumption appears more reasonable when compared to the Europeans, North Americans, and the Japanese who respectively consumed on average 6.285, 13.985 and 8.063 TWh of electricity during 2008: but, some might say, only apparently.

A further analysis of these consumption patterns, as shown in Table 1 below, reveals that the GCC countries’ consumption is driven largely by home use, with almost 47% of the energy consumption siphoned into residential use when compared to a global average of around 25% and the most prolific of energy consumers, the Americans, consuming just over 33% of the total electricity supplied in the US in 2008 in  their homes. In fact, head-to-head when absolute numbers are compared, each GCC resident is almost at par with the average consumer in the USA: both using more or less 4.5 TWh of electric energy in their respective homes in 2008.

The future of GCC energy efficiency
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