JEDDAH: Demand for power projects in the Middle East is forecast to increase 30 percent up to 2015, said Rental Solutions & Services (RSS) - a leader in diesel power generation equipment. Robert Bagatsing, RSS Group Marketing Manager, said "there will be an increase in demand for power projects around the world, particularly in developing countries. An estimate of 30 percent increase in rental power demand is forecasted up to 2015." As the global economy is still devastated by the financial crisis, private power companies will still struggle to fund their permanent power plants. "Therefore, there is still a high demand for rental power companies to fill-in the gaps" he said. In the Middle East, the demand is very high in countries like Yemen, Iraq, Afghanistan, Kuwait, Qatar, UAE (Abu Dhabi, Dubai and Northern Emirates), Saudi Arabia and Oman, he added. "RSS had a successful 2009 and we are forecasting a successful 2010 as well. In 2009, we have expanded our operations to Jeddah, Riyadh, Dammam and opened our new offices in Al-Khobar and Abu Dhabi" Bagatsing said. Africa rental power opportunities are in Nigeria, Ivory Coast, South Africa, Kenya, Angola, Algeria, Egypt, Sudan, Congo Rep, Libya. Latin America will also consume more power due to high lack of power infrastructure. Countries like Brazil, Argentina, Chile, Mexico and Venezuela are a great opportunity. There are also opportunities in the Asian regions. Countries like the PhilippinesIndia, Pakistan, Bangladesh, China, Indonesia, Vietnam, and Thailand will still demand for more power to continue its industrial growth. Peter den Boogert, RSS General Manager for Power Projects, said "Europe is a declining rental power market because it is a mature market. But there are still opportunities in Europe, although not as huge as the new emerging markets. There is a high demand in new emerging markets such as Middle East, Asia and Africa due to high economic activities but less investment in power infrastructure by the government. The economic activities of these new developing markets are increasing at a fast pace while its permanent power projects are delayed. There's a huge demand for power but less supply from the utility providers." "Gas generator engines are also being developed toward a sustainable project" Boogert added. "But if you are going to look at the overall cost, you will see that diesel engine generators are still a viable option as compared to gas. Availability of gas is a critical important factor to a successful power project, however, there are locations/countries where gas is not available and diesel is more preferred due to its availability," he said. Bagatsing further said "the whole rental power industry worldwide will grow due to utilities, construction, events, oil & gas, military and emergencies (natural disasters and manmade conflicts). Middle East, Africa, South America and South Asia will have the biggest share among the geographic market." RSS expects that Middle East will grow at 20 percent in 2011. Driving the growth would be utilities, oil & gas, construction, events and military projects. Iraq, Afghanistan, Saudi Arabia, UAE and Qatar will be the driving force in the rental power projects in the Middle East. These markets will have the most opportunities for rental power companies.
