Desalination Market in UAE to Reach $3,226.3m by 2016 – New GWI Report
UAE will be spending $3,226.3m per year on building and operating desalination plants suggests a new report by Global Water Intelligence (GWI). This represents a 305% increase on current expenditure according to Desalination Markets 2010* (see www.desalmarkets.com) published this month.
Oxford, United Kingdom, October 11, 2010 --(PR.com)-- UAE currently has 8,885,366 m3/d of contracted desalination capacity, but this will rise to 13,700,138 m3/d by 2016. During that time the cost of operating existing plants and the new plants that come on line will rise to $973.5m, compared to $682.3m in 2010. This steep increase in expenditure on desalination is part of a global trend towards the development of alternative water resources in the face of growing scarcity.
The forecast is based on the timing of proposed desalination projects in UAE, and expectations of increased demand for water as a result of urbanisation, economic growth, and increased irrigation. There are more than 2.5 million m3/d of desalination capacity currently on the drawing board across the Emirates.
Essentially the amount of naturally occurring fresh water in the world is constant – or even declining because of the over-exploitation of non-renewable ground water resources. Demand for water continues to grow as the need to increase agricultural production sucks up available water for irrigation, forcing urban water users to develop new resources. Overall global desalination capacity is expected to grow from 68.3 million m3/d at the beginning of this year to 129.9 million m3/d by the end of 2016. Full details can be found at www.desalmarkets.com.
Christopher Gasson, editor of Desalination Markets 2010, commented: “The UAE has always been one of the most important desalination markets in the world. The global financial crisis has certainly had an impact on some of the real estate related projects in Dubai and the Northern Emirates but the Abu Dhabi market has remained strong. By 2016 the desalination market should be back at the same level as 2007 in terms of new build capacity.
“The big change over the next five years is going to be the Dubai Elecricity and Water Authority’s decision to move over to private finance. This will open out the market to a wider range of technologies and plant suppliers and ensure that the authority gets the best value for money.”
Desalination Markets 2010 also illustrates that after years of falling costs, the price of desalinated water has started to rise again. There has been considerable progress in reducing the energy consumption of desalination plants, which has brought down operating costs, but the cost of building new plants is rising. This is largely due to extra spending to protect the environment, and the cost of more energy efficient equipment, the report finds. Five years ago the benchmark price for a thousand litres of desalinated water was around US$0.50, but today the best plants struggle to deliver water for less than US$0.60 per thousand litres. Despite this, water from a desalination plant is still less than one thousandth of the price of bottled waters.
* Desalination Markets 2010: Global Forecast and Analysis The market forecasts in this report are based in part on an analysis of the 300 projects tracked by GWI in its Desalination Tracker each month, and in part on GWI’s research into supply and demand for water in each country. The forecasts are completed by marrying up the capacity forecast with www.desaldata.com’s cost calculator to put a dollar value on the expected market share. In total, 33 countries are profiled, showing key market indicators, waster sector structure, demand and supply of different water types and proposed plants and opportunities - along with 106 company profiles, a who’s who of industry leaders and active participants.
The report can be purchased at Global Water Intelligence, price £1700. Contact Clair Blakeway, cblakeway(at)globalwaterintel.com tel: +44 1865 204208.
Further information:
Besides Desalination Markets 2010, Global Water Intelligence publishes the IDA Worldwide Desalting Plant Inventory (now in its 23rd edition), GWI magazine's Desalination Tracker (which provides updates on all major desalination projects worldwide), Water Desalination Report (a weekly newsletter for the desalination business) and DesalData.com (a complete information service for the desalination industry). Its market forecasting service is widely accepted as the most authoritative in this industry. See http://www.desalmarkets.com/?prcomuae and www.globalwaterintel.com/?prcomuae.
Press contact, and Executive Summary available from;
Ruth Newcombe, rn(at)globalwaterintel.com
###
The forecast is based on the timing of proposed desalination projects in UAE, and expectations of increased demand for water as a result of urbanisation, economic growth, and increased irrigation. There are more than 2.5 million m3/d of desalination capacity currently on the drawing board across the Emirates.
Essentially the amount of naturally occurring fresh water in the world is constant – or even declining because of the over-exploitation of non-renewable ground water resources. Demand for water continues to grow as the need to increase agricultural production sucks up available water for irrigation, forcing urban water users to develop new resources. Overall global desalination capacity is expected to grow from 68.3 million m3/d at the beginning of this year to 129.9 million m3/d by the end of 2016. Full details can be found at www.desalmarkets.com.
Christopher Gasson, editor of Desalination Markets 2010, commented: “The UAE has always been one of the most important desalination markets in the world. The global financial crisis has certainly had an impact on some of the real estate related projects in Dubai and the Northern Emirates but the Abu Dhabi market has remained strong. By 2016 the desalination market should be back at the same level as 2007 in terms of new build capacity.
“The big change over the next five years is going to be the Dubai Elecricity and Water Authority’s decision to move over to private finance. This will open out the market to a wider range of technologies and plant suppliers and ensure that the authority gets the best value for money.”
Desalination Markets 2010 also illustrates that after years of falling costs, the price of desalinated water has started to rise again. There has been considerable progress in reducing the energy consumption of desalination plants, which has brought down operating costs, but the cost of building new plants is rising. This is largely due to extra spending to protect the environment, and the cost of more energy efficient equipment, the report finds. Five years ago the benchmark price for a thousand litres of desalinated water was around US$0.50, but today the best plants struggle to deliver water for less than US$0.60 per thousand litres. Despite this, water from a desalination plant is still less than one thousandth of the price of bottled waters.
* Desalination Markets 2010: Global Forecast and Analysis The market forecasts in this report are based in part on an analysis of the 300 projects tracked by GWI in its Desalination Tracker each month, and in part on GWI’s research into supply and demand for water in each country. The forecasts are completed by marrying up the capacity forecast with www.desaldata.com’s cost calculator to put a dollar value on the expected market share. In total, 33 countries are profiled, showing key market indicators, waster sector structure, demand and supply of different water types and proposed plants and opportunities - along with 106 company profiles, a who’s who of industry leaders and active participants.
The report can be purchased at Global Water Intelligence, price £1700. Contact Clair Blakeway, cblakeway(at)globalwaterintel.com tel: +44 1865 204208.
Further information:
Besides Desalination Markets 2010, Global Water Intelligence publishes the IDA Worldwide Desalting Plant Inventory (now in its 23rd edition), GWI magazine's Desalination Tracker (which provides updates on all major desalination projects worldwide), Water Desalination Report (a weekly newsletter for the desalination business) and DesalData.com (a complete information service for the desalination industry). Its market forecasting service is widely accepted as the most authoritative in this industry. See http://www.desalmarkets.com/?prcomuae and www.globalwaterintel.com/?prcomuae.
Press contact, and Executive Summary available from;
Ruth Newcombe, rn(at)globalwaterintel.com
###
Contact
Global Water Intelligence
Ruth Newcombe
+33 627 776 986
www.desalmarkets.com/?prcomuae
HQ : +44 1865 204208
Fax: +44 1865 204209
Ruth Newcombe
+33 627 776 986
www.desalmarkets.com/?prcomuae
HQ : +44 1865 204208
Fax: +44 1865 204209
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