“Introduction: The Effect of Subsidies on Power Trade in GCC” Ahmed Al-Ebrahim Chief Executive Officer (CEO) - GCCIA Reforming Subsidies for Electricity Markets in the GCC 17 th December 2015 Yas Viceroy, Abu Dhabi
“Introduction: The Effect of Subsidies on
Power Trade in GCC ”
Ahmed Al-Ebrahim Chief Executive Officer (CEO) - GCCIA
Reforming Subsidies for
Electricity Markets in the GCC
17th December 2015 Yas Viceroy, Abu Dhabi
Our Journey Continues ………
2010 Promoting the idea of power
trading in GCC
2013 Identified Obstacles facing
Power Trading and way forward
2014 Presented world
wide experience
Fundamentals (1): Low prices for oil
& gas is a long-term perspective
Challenge: Limited ability for GCC to continue with
subsidies - (A growing burden on GCC economies)
GCC paying more than $160 billion on energy
subsidies annually
Opportunity: With lower oil prices it is easier to deal
with the subsidies
Fundamentals (2): Climate change
and Paris Agreement perspective
No more sentiment to fossil fuels – fuel
subsidies in growing contradiction to the Paris
agreement
Energy efficiency on the top of the agenda –
only market prices can encourage people to
save on energy
Fundamentals (3): Energy Sector
– Field of Technology Revolution
Renewable energy can compete in GCC while
fuels not subsidized (not to repeat mistakes
done by others where RES subsidized)
Chances to quickly develop new market
segments – market of reserves, demand
response, energy storage market, distributed
energy markets etc.
Fundamentals (4): Common GCC
Market - Important decision of
the last GCC Summit
Creating GCC Power Market: Market can be
created with some subsidies still in place, but
only on consumer level (to support families,
low income and vulnerable sectors)
Only regional market can develop enough
liquidity to become competitive and properly
allocate social welfare of GCC people
Possible Next Steps for GCC Power Sector ??
GENERATION TRANSMISSION DISTRIBUTIONSUPPLY
SALES
CU
STO
MER
CO
NN
EC
TIO
NNatural MonopoliesFuel
Subsidies
Tariffs
Subsidies
Thank You
GCC Interconnection Authoritywww.gccia.com.sa
Interconnecting our world
Eng. Ahmed Ali Al-EbrahimChief Executive Officer