Natural gas will remain the dominant fuel choice for the power sector in the Middle East over the next two decades, said a new report.

At the same time, high oil prices will likely be detrimental to oil-fired generation; the share of the oil fired generation in the electricity mix is projected to decline from 36 per cent in 2008 to 13 per cent by 2035, according to the report ‘Empowering Ideas 2011: A Look at Ten of the Emerging Issues in the Power and Utilities Sector’ from Deloitte Touche Tohmatsu Limited (DTTL).

The report suggests the recent natural disasters that led to a nuclear meltdown at the Fukushima nuclear plant in Japan will have far-reaching impacts on the global nuclear power industry.

“The impact of the events in Japan on the nuclear industry will be both profound and long-lasting,” said Peter Bommel, DTTL Global Industry Leader for Energy & Resources.

“As the demand for energy continues to increase, energy companies will face formidable challenges in balancing safety concerns with energy demands.”

Now in its second year, the report offers insights into issues and trends in the coming year and identifies opportunities (e.g., the high growth of unconventional gas) and challenges (e.g., the security of energy supplies).

The report includes the prediction that governments, utilities, and consumers will increasingly tap into energy efficiency and demand side management programmes in order to address these challenges globally and in the Middle East.

Another trend, according to the report, is the growing importance of data analytics, which help companies analyze enormous data sets to create scenarios and take informed decisions.

“Although the region has weathered the recent economic crisis better than most, due to its growing population, the Middle East will require significant investment in generating capacity and networks to produce the required energy for business and domestic users,” said McKellar, partner and Middle East energy & resources leader at Deloitte Middle East. – TradeArabia News Service