The Qatari power sector is set for strong growth over the coming decade as the government continues to spend heavily on new infrastructure projects, and energy consumption continues to grow. With no sign of a let-up in government spending on the horizon, particularly as the emirate gears up for the FIFA World Cup in 2022, and the economy in good shape, demand for power is likely to continue rising over the next few years, leaving the electricity sector in good stead.
The outlook for the domestic power sector in Qatar remains bright. Government plans to build a huge USD3bn power plant, known as Ras Laffan D, coupled with the recent announcement of USD2.1bn in investments in the country's electricity transmission and distribution network, underline our positive outlook for the sector. Although Qatar is attempting to reorient its power sector towards the use of solar power and other renewable sources, for the time being the emirate remains almost entirely dependent on natural gas for its energy. With the economy continuing to grow at a robust pace, and the government anxious to ensure that the country is ready for the 2022 World Cup, this is likely to remain the case for the foreseeable future. Although such a dependence on a single source of fuel for electricity generation may be a concern elsewhere, given the emirate's vast supplies of natural gas, this dependence is unlikely to translate into any serious risks to the sector's outlook any time soon.