Will the Next Mini Dubai Implode Due to Lack of Electricity?
For those of you who are not familiar to which location this article pertain's to, it is a region in the Gulf called Ajman.
Ajman is one of the seven Emirates that makes up the United Arab Emirates, just 12 miles North East of Dubai.
For those that are not familiar with the ongoing economic situation within the U.
A.
E, it is the region within the Gulf that has experienced the most aggressive growth over the past decade.
This has had a prevalent direct affect on the housing market within the region encouraging massive investment in development in real estate.
This has seen some of the most ambitious construction projects in the world undertaken in the region.
One of the issues associated with this rapid expansion has been the sustainability of these projects in terms of supplying them with power.
We have started seeing this problem manifest itself in Ajman but luckily with the majority of projects in this area still under construction it looks like there may be the much needed time lag needed in order to organise construction of the necessary power stations.
Many developers within the region have already expressed that if the power demand is not met then they will provide the temporary power generators necessary in order to meet demand.
For example the developers of the $1 billion Eye of Ajman project have already said that they will provide a power generator for every 109 of the plots is power supply is not available at the time of delivery.
As a counter method the Federal Electricity and Water Authority have given the green light to private companies to construct power generators and desalinate water in order to increase construction of the necessary infrastructure, with other plan's for more government power stations set to be constructed to to increase supply.
This increased supply should be able to sustain the aggressive growth, but if there is too much demand from new development's the Emirates government may have to look at ways at which to either attract further investment or slow down the growth of the Emirate.
Ajman is one of the seven Emirates that makes up the United Arab Emirates, just 12 miles North East of Dubai.
For those that are not familiar with the ongoing economic situation within the U.
A.
E, it is the region within the Gulf that has experienced the most aggressive growth over the past decade.
This has had a prevalent direct affect on the housing market within the region encouraging massive investment in development in real estate.
This has seen some of the most ambitious construction projects in the world undertaken in the region.
One of the issues associated with this rapid expansion has been the sustainability of these projects in terms of supplying them with power.
We have started seeing this problem manifest itself in Ajman but luckily with the majority of projects in this area still under construction it looks like there may be the much needed time lag needed in order to organise construction of the necessary power stations.
Many developers within the region have already expressed that if the power demand is not met then they will provide the temporary power generators necessary in order to meet demand.
For example the developers of the $1 billion Eye of Ajman project have already said that they will provide a power generator for every 109 of the plots is power supply is not available at the time of delivery.
As a counter method the Federal Electricity and Water Authority have given the green light to private companies to construct power generators and desalinate water in order to increase construction of the necessary infrastructure, with other plan's for more government power stations set to be constructed to to increase supply.
This increased supply should be able to sustain the aggressive growth, but if there is too much demand from new development's the Emirates government may have to look at ways at which to either attract further investment or slow down the growth of the Emirate.
Source...