Oil is a topic that is on the mind of almost everyone in the business world. While 2016 went by with boardroom battles being fought by big oil against OPEC, 2017 promises to be no less exciting; OPEC seems to have finally given up on trying to squeeze out the competition by ramping productions. Rather, it is playing the waiting game and extending production cuts to try and burn excess capacity to try and raise oil prices. But meanwhile, oil prices stay low, not even half of what they were 3 years back.

What does this have to do with the topic at hand? Well for one, a majority of the revenue generated by governments in the Gulf are directly tied to oil prices and quantity sold. Gulf countries were able to support a massive social security net, one which appears unfeasible at the moment given the uncertainties in the oil market. Again, what does this have to do with the topic at hand? Simple deductions can be made on the basis of this information. Firstly, the Gulf countries need to diversify their economy, from oil based economies, to manufacturing and services oriented economy. Secondly it needs to trim its debt and send people to work or to get skilled.

This is where smart grids will come to play a striking role in the near future. Smart grids are similar to conventional electric grids; they resolve the basic purpose of connecting the end user to an electricity generating source. But, smart grids come with smart meters, smart appliances, renewable energy resources etc. which provide a gamut of solutions and services that cut down on transmission costs, save time taken to detect leakages or breakdowns and help with multi-lateral cooperation in terms of power sharing, wherever the need arises.

 Declining oil revenues, decreased social safety spending, widening deficits and the growing spectre of global warming make it incumbent for GCC countries to adopt renewables and smart grids as soon as possible. While the initial investment into renovating their traditional grids may be large, it seems without a doubt that the long-term benefits to smart grid technology will pay itself back many times over in the future. Many countries in GCC and the world are taking to smart metering programs on a war footing; the onus is on the integration of different solutions and services into an existing grid (with minor modifications needed) rather than on creating an entirely new grid, which would be unfeasible given the inordinate amount of capital expenditure required.

The GCC countries are some of the most energy intensive countries in the world. Countries like Saudi Arabia, Qatar etc. consume significantly more electricity per capita than the the global average. With ambitious plans to disinvest in oil and slowly move towards manufacturing and services, it makes sense to start with a sector than can offer steady employment to technical people, save money and also boost infrastructure. “GCC Smart Grid Market By Business Type, By Country, Forecast & Opportunities, 2012-2026”, a TechSci Research report goes into the nitty gritty of the challenges and drivers of this upcoming industry, offering a strategic perspective along with providing insight into the leading players and how they may grow their business.