French firm seeks larger slice in UAE market

Dubai: French energy supplier Areva Transmission and Distribution won Dh5.28 billion orders from the Middle East, a top company official said.

The company, which wants to become a preferred bidder for the UAE's first nuclear power plant, has increased its activities in the country.

Representatives from the company's Transmission and Distribution (T&D) division are visiting the region, where the firm has 13 sales offices and 1,300 employees.

In 2008, Areva T&D increased its regional workforce by 40 per cent, of which nearly two thirds were high-skilled engineering positions.

The Middle East represents a significant market for energy development for French giant Areva, which is keen to increase its operations here.

"We went from being very small to having a full time presence and being a leader in this market in 2007. Our strategy is to continue to grow and to expand as the market is growing in the region." said Philippe Guillemot, chairman and CEO of Areva T&D.

In 2007, the firm acquired 20 per cent market share in the Middle East, with total regional sales revenues of 1.2 billion euros (Dh5.8 billion sales for the same year totalled 4.33 billion euros (Dh21 billion).

Areva's transmission and distribution division supplies products, systems and services for the medium and high-voltage electricity markets.

The growing energy requirements of Middle Eastern economies have provided a plethora of opportunities for international companies to benefit from increased opportunities in the transmission and distribution sector.

In a White Paper issued by authorities in Abu Dhabi last year, the UAE's peak electricity demand was expected to be 15,546 megawatts in 2008.

This figure is projected to double by 2015 and to exceed 40,000 megawatts in 2020.

The Middle East market therefore remains important for companies such as Areva T&D to tap.

Increased participation in the lucrative utilities sector and heavy industry in the region is expected.

"We work for all the utilities in the region... and there is more investment in heavy industry in the region like aluminium, and oil and gas obviously, and this represents an opportunity for us," said Guillemot.

The company is already involved in developing the GCC Grid, which will link all the states in the region to exchange electricity in a more cost-effective and reliable manner.

Another option to meet future energy requirements being explored by regional governments include the development of civil nuclear energy.

"So far Abu Dhabi seems to be in pole position," said Guillemot. "But it is a long process."

Last year, the UAE's Emirates Nuclear Energy Corporation appointed US firm CH2M Hill as the managing agent for assessing the country's "potential" civil nuclear power programme.

If and when such a project does begin to move forward, Guillemot declared that Areva would like to be involved in it.

"We are the only one right now building two nuclear plants of the third generation, so we have a definite advantage," he said.