Matar: We Aspire to Have Arab Market for Electricity by 2038
Jameela Matar, Director of the Energy Department of the League of Arab States, has highlighted the increasing demand for electricity in Arab countries. This demand is expected to rise annually by a significant margin.
Bridging the Gap in Electricity Demand
To address this challenge, a joint Arab effort is needed, focusing on Arab electrical interconnection and developing regional electrical equipment industries.
Matar highlighted the energy market’s volatility from global geopolitical issues, seeing energy sector transformation as key to sustainable growth. The League of Arab States aims to enhance electrical interconnection.
Vision for 2038
The (PAEM) is key to the League of Arab States’ regional cooperation and economic recovery strategy. Endorsed by the Arab Ministerial Councils for Electricity, the PAEM’s establishment is a high priority.
Supported by the World Bank and Arab countries, this initiative aims to significantly boost regional power system integration. The PAEM agreements aim to enable binding electricity trade among Arab nations.
This will increase trade from about 2% of total MENA region production to 37-41% by 2035. This plan involves enhancing existing cooperation and cross-border transmission infrastructure through new pricing and commercial trade mechanisms.
Step Towards Sustainability, Economic Growth
Electricity network integration in the Arab world aims to meet growing electricity needs like improved reliability and cost-effective exchanges. Consequently, this could lead to a superior electricity system with lower costs than national efforts.
Specifically, the Gulf Cooperation Council (GCC) demonstrates this with its member state electricity exchange, enhancing reliability and possibly reducing the need for new capacity. Moreover, the World Bank study is developing essential trade frameworks for this purpose.
Lastly, the Pan-Arab Electricity Market plan, targets the region’s electricity demand by 2038, promising economic growth, sustainability. It will enhance regional cooperation, signaling a new era in Arab energy management and trade.
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