Impact of oil prices, economic diversification policies and energy conservation programs on the electricity and water demands in Kuwait

This paper describes the influences of oil revenue and government's policies toward economic developments and energy efficiency on the electricity and water demands. A Kuwait-specific electricity and water demand model was developed based on historic data of oil income, gross domestic product (GDP), population and electric load and water demand over the past twelve years (1998-2010). Moreover, the model took into account the future mega projects, annual new connected loads and expected application of energy conservation programs. It was run under six circumstances representing the combinations of three oil income scenarios and two government action policies toward economic diversification and energy conservation. The first government policy is the status quo with respect to economic diversification and applying energy conservation programs. The second policy scenario is the proactive strategy of raising the production of the non-oil sector revenue and enforcing legislations toward energy demand side management and conservation. In the upcoming 20 years, the average rates of change of the electric load and water demand increase are 0.13 GW and 3.0 MIGD, respectively, per US dollar oil price increase. Moreover, through proactive policy, the rates of average load and water demand decrease are 0.13 GW and 2.9 MIGD per year, respectively.