BUSINESS OPPORUNITIES<br />                  IN SAUDI POWER SECTOR<br />US-Saudi<br />                                    ...
Electricity Industry in Saudi Arabia<br /><ul><li>Starts as 100%private ownership  and operation.
Late 70`S consolidated into four major power co (SCECO).
The government involved as major shareholder .
Mid 2000 All operating entities merged in one company  </li></ul>Saudi Electricity Company (SEC).<br />
<ul><li>Incorporated from 10 operating utilities in 2000.
Largest electric  entity in the region in terms of  capacity  ,market  capital  and  shareholder’s equity.
Owns 85% generation and 100% transmission , distribution and retail .
Total assets over 50 billion US$.
Annual revenues 6 Billion US$ .
Annual growth 6%.
 74% directly owned by the Government.</li></ul>SAUDI  ELECTRICITY  COMPANY<br />
Scope of Operations<br />
<ul><li>High growth in demand (  7- 8%).
Operate in a very supportive environment .
High credit rating (AA~ ).
 Invest in productive assets.
Reliable and secured fuel supply.
 government support.</li></ul>SEC credit strength<br />
 GROWTH (2000 – 2009)<br />
projects Under Execution<br />
Load forecast (gwatts) <br />
No OF CUSTOMERS<br /> (millions)<br />
Generation Capacity<br />generation capacity installed should meet the expected 7% increase in peak demand and a reserve m...
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Business Opportunities in Saudi Power Sector

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Ali Saleh Al-Barrak, President and CEO, Saudi Electricity Company's presentation at the 2010 U.S.-Saudi Business Opportunities Forum in Chicago, IL.

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Business Opportunities in Saudi Power Sector

  1. 1. BUSINESS OPPORUNITIES<br /> IN SAUDI POWER SECTOR<br />US-Saudi<br /> BUSINESS OPPORTUNITIES FORUM<br /> CHICAGO April 28-29, 2010<br />Ali Albarrak<br />President &C E O<br />Saudi Electricity Company <br />
  2. 2. Electricity Industry in Saudi Arabia<br /><ul><li>Starts as 100%private ownership and operation.
  3. 3. Late 70`S consolidated into four major power co (SCECO).
  4. 4. The government involved as major shareholder .
  5. 5. Mid 2000 All operating entities merged in one company </li></ul>Saudi Electricity Company (SEC).<br />
  6. 6. <ul><li>Incorporated from 10 operating utilities in 2000.
  7. 7. Largest electric entity in the region in terms of capacity ,market capital and shareholder’s equity.
  8. 8. Owns 85% generation and 100% transmission , distribution and retail .
  9. 9. Total assets over 50 billion US$.
  10. 10. Annual revenues 6 Billion US$ .
  11. 11. Annual growth 6%.
  12. 12. 74% directly owned by the Government.</li></ul>SAUDI ELECTRICITY COMPANY<br />
  13. 13. Scope of Operations<br />
  14. 14. <ul><li>High growth in demand ( 7- 8%).
  15. 15. Operate in a very supportive environment .
  16. 16. High credit rating (AA~ ).
  17. 17. Invest in productive assets.
  18. 18. Reliable and secured fuel supply.
  19. 19. government support.</li></ul>SEC credit strength<br />
  20. 20. GROWTH (2000 – 2009)<br />
  21. 21. projects Under Execution<br />
  22. 22. Load forecast (gwatts) <br />
  23. 23. No OF CUSTOMERS<br /> (millions)<br />
  24. 24. Generation Capacity<br />generation capacity installed should meet the expected 7% increase in peak demand and a reserve margin.<br />Generation capacity (GW)<br />
  25. 25. POWER SECTOR CHALLENGES<br /><ul><li>High annual growth in demand ( will continue 6-7%).
  26. 26. Extremely sharp daily and yearly load curve (air-conditioning).
  27. 27. Replacement of inefficient old generating units.
  28. 28. High capital investment for expansion.
  29. 29. The need for private sector investment .</li></li></ul><li>HOW TO MEET THE CHALLENGES ?<br /><ul><li>More investment in power generation,T&D .
  30. 30. Encourage the developers for more IPP.
  31. 31. Introduce the smart grid transmission system.
  32. 32. Promote energy conservation and load management.
  33. 33. Invest in renewable energy.</li></li></ul><li>
  34. 34.
  35. 35. IPP PROGRAM IN SEC<br /><ul><li>SEC will Continue to encourage private investors to invest in Future Generation projects .
  36. 36. 30 – 40 % of Future generation will be IPP(BOO).
  37. 37. SEC partnership will be 10%-50% in the equity.
  38. 38. Long term power purchase agreements (20years) </li></ul> With reasonable return on investment .<br />
  39. 39. WHY IPP?<br /><ul><li> Providing Financial Option for Highly Capital Intensive Generation Projects .
  40. 40. Helping To Re-Direct Available Funds To T&D (Monopoly Activities)
  41. 41. Reallocation Expenditure From CAPEX To OPEX.
  42. 42. Avoiding Mismatch Between Medium Term Financing and Long Life PP Projects.</li></li></ul><li>SUCCESSFUL IPP ROJECTS <br /> Two IPP Projects in process:<br />1. Rabigh Power Plant (closed financialyJuly last yea)<br /><ul><li>1200 MW / HFO
  43. 43. IPCOD APRIL 2012
  44. 44. Investment US$ 2.4 billions</li></ul>2. Riyadh Power Plant 11 (financial close next month)<br /><ul><li>1800 MW / GAS
  45. 45. IPCOD APRIL 2013
  46. 46. INVESTMENT US 1.5 billions. </li></li></ul><li>IPP FUTURE OPPORTUNITIES<br /> (INVESTMENTS OF $20B) TO BUILD 12 GW<br />18<br />
  47. 47. SAUDI NATIONAL GRID by 2018<br />
  48. 48.
  49. 49.
  50. 50. BUSINESS OPPORTUNITIES<br /><ul><li>Material and Equipment supply.
  51. 51. As an EPC contractor .
  52. 52. Local manufacturing .
  53. 53. Participate in IPP projects .
  54. 54. Opportunity in consultation and engineering.
  55. 55. Invest in future energy retail.</li></li></ul><li><ul><li>The growth of electrical energy demand in Saudi Arabia will continue 6-7%.
  56. 56. Power projects needs 80-90 billion US$ as capital investments for the next 10 years .
  57. 57. Private investors have the opportunity to take 30-40% of the generation projects as a BOO projects.
  58. 58. US companies have the opportunity to take part both in EPC and IPP.
  59. 59. There are oportunities in Consultation , Engineering and Services in power sector. </li></ul>Conclusion<br />
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