BUSINESS OPPORTUNITIES
IN SAUDI POWER SECTOR
U.S. – Saudi
Business Opportunities Forum
5-7 December 2011
Atlanta-U.S.A
1
ElectricityIndustry in Saudi Arabia
 Starts in the 50`s 100% private utilities .
 Late 70`S consolidated into four major...
 Largest electricity system in the region.
 Assets exceeds US$70 billions.
 Over 52,000 MW installed capacity.
 48,000...
DATA
No of customer
( Million)
Peak load
(MW)
Available
generation (MW)
Transmission
(KM)
Energy
(GWH)
2001 3.6 23000 2400...
 High growth in demand ( will continue 7- 8%).
 High growth in fuel consumption.
 Low tariff for domestic (2.2 US cents...
 Replace all inefficient generating units.
 Build more capacity and more interconnection.
 Promote energy conservation ...
RECORDED & FORECASTED LOADS
MW
7
Over the next 10 years:
Generation expansion US$ 40 billions
Transmission expansion US$ 24 billions
Distribution expans...
Year Project name Capacity (MW) Date in Service
Jeddah South PP (EPC) steam 2,600 2015
Rabigh 2 PP( IPP) steam 1,200 2015
...
 Private power production is a partnership .
 SEC partnership 20-50 % .
 Long term power -off take-purchase agreement.
...
SUCCESSFULIPP PROJECTS
 Three IPP Projects under development:
1. Rabigh Power Plant (Awarded July2009)
• 1200 MW / HFO
• ...
KINGDOM’S INTERCONNECTION STRATEGIC PLAN
11
Year Project Length Miles Date in Service
BISHA_DAWASIR +2 substations 320 2015
5th 380 KV LINE TO CENTRAK 250 2015
MADINA...
Year Project Length Miles Date in Service
Tabuk-Tabarjal +Substations 200 2017
Umluj-Wadjh +Substations 250 2017
South-Wes...
BUSINESS OPPORTUNITIES
As an EPC contractor.
Material and Equipment supply.
Local manufacturing and services.
Particip...
 High growth in demand will continue 6-7%.
 75-80 billion US$ for capital investment.
 Good opportunities for U.S. comp...
For more information you can visit
Saudi Electricity Company web
page at :
www.se.com.sa
18
19
Generation Capacity
generation capacity installed should meet the expected
7% increase in peak demand and a reserve margin...
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Business Forum: Opportunities in Water and Electricity - Al-Barrak

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Presentation at the US-Saudi Business Opportunities Forum (Dec 5-7, 2011, Atlanta, GA). Ali Saleh Al-Barrak, President and CEO, Saudi Electricity Company, presented at the panel titled, "Opportunities in Water and Electricity".

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Business Forum: Opportunities in Water and Electricity - Al-Barrak

  1. 1. BUSINESS OPPORTUNITIES IN SAUDI POWER SECTOR U.S. – Saudi Business Opportunities Forum 5-7 December 2011 Atlanta-U.S.A 1
  2. 2. ElectricityIndustry in Saudi Arabia  Starts in the 50`s 100% private utilities .  Late 70`S consolidated into four major regional power companies (SCECO).  In 2000 All operating entities merged in one company Saudi Electricity Company (SEC).  SEC owns 85% of generation and 100% of transmission and distribution.  The government involved as shareholder and regulator . 2
  3. 3.  Largest electricity system in the region.  Assets exceeds US$70 billions.  Over 52,000 MW installed capacity.  48,000 MW peak demand and 250MMWH.  160,000 Miles of transmission& distribution lines  Serving 6 million customers .  Revenues 8.5 US$ bln with 7-8% annual growth . SAUDI power sector TODAY 3
  4. 4. DATA No of customer ( Million) Peak load (MW) Available generation (MW) Transmission (KM) Energy (GWH) 2001 3.6 23000 24000 30000 114000 2011 6.2 47000 52000 48000 240000 Growth (%) 72% 105% 102% 65% 101% GROWTH (2001– 2011) 4
  5. 5.  High growth in demand ( will continue 7- 8%).  High growth in fuel consumption.  Low tariff for domestic (2.2 US cents/kwh) .  Low average load factor (55%) seasonal.  Inefficient old of generating units.  High capital- investment. CHALLENGES 5
  6. 6.  Replace all inefficient generating units.  Build more capacity and more interconnection.  Promote energy conservation initiatives.  Load management programs (time of use tariff).  Introduce smart grid and smart systems .  Encourage and support renewable energy. Opportunities 6
  7. 7. RECORDED & FORECASTED LOADS MW 7
  8. 8. Over the next 10 years: Generation expansion US$ 40 billions Transmission expansion US$ 24 billions Distribution expansion US$ 16 billions Total capital investment US$ 80 billions FUTURE CAPITAL INVESTMENT 9
  9. 9. Year Project name Capacity (MW) Date in Service Jeddah South PP (EPC) steam 2,600 2015 Rabigh 2 PP( IPP) steam 1,200 2015 Dheba PP (IPP) ccpp+steam 1,800 2015 Gizan pp (EPC) steam 2,600 2016 Ras Alkhair pp (IPP) 2,600 2016 Al-Shogaig 2 PP (? ) 1,200 2017 Duba 2 PP ( ? ) 800 2017 2015 Alogair PP 2,600 2018 Ras Abigamis 2,600 2019 Total investment US$40 billions ma j or Fut ur e Gener a t ion pr oj ect s 2012 2013 2014 10
  10. 10.  Private power production is a partnership .  SEC partnership 20-50 % .  Long term power -off take-purchase agreement.  SEC provides the land and fuel .  30- 40% of future generation will be IPP .  20/80 equity/debt ratio. Ipp program 6
  11. 11. SUCCESSFULIPP PROJECTS  Three IPP Projects under development: 1. Rabigh Power Plant (Awarded July2009) • 1200 MW / HFO • INVESTMENT US$ 2.5 billion • IRR > 8.45% 2. Riyadh Power Plant 11 (Awarded July 2010) • 1800 MW / CCPP/GAS • INVESTMENT US$2.1billion • IRR > 6% 3. Gorayah IPP (Awarded Sep. 2011) • 4000 MW / CCPP /GAS • INVESTMENT US$ 3.5 billion • IRR > 7.5% 15
  12. 12. KINGDOM’S INTERCONNECTION STRATEGIC PLAN 11
  13. 13. Year Project Length Miles Date in Service BISHA_DAWASIR +2 substations 320 2015 5th 380 KV LINE TO CENTRAK 250 2015 MADINAH-HAIL 230 2015 RIYADH-JEDDAH DC line 500 2016 TABUK-TABARGAL +2Substations 380 2016 WEST _SOUTH 2ND LINE 320 2016 2014 MADINAH-TABUK DC Line 380 2017 Fut ur e 380KV t r a nsmission l ines pr oj ect s 2012 2013 12
  14. 14. Year Project Length Miles Date in Service Tabuk-Tabarjal +Substations 200 2017 Umluj-Wadjh +Substations 250 2017 South-West 2nd line 300 2018 Jouf-Tabarjal 100 2018 2015 Al-grayat- Tabarjal 160 2019 capital cost US$25 Bln 2014 2014 Fut ur e 380KV t r a nsmission / cont d.. 13
  15. 15. BUSINESS OPPORTUNITIES As an EPC contractor. Material and Equipment supply. Local manufacturing and services. Participate in IPP projects . Opportunity in engineering services. Invest in new and renewable energy. 16
  16. 16.  High growth in demand will continue 6-7%.  75-80 billion US$ for capital investment.  Good opportunities for U.S. companies.  Investors have the opportunity . Yes, Big challenge, But great opportunities !!! conclusion 17
  17. 17. For more information you can visit Saudi Electricity Company web page at : www.se.com.sa 18
  18. 18. 19
  19. 19. Generation Capacity generation capacity installed should meet the expected 7% increase in peak demand and a reserve margin. 41 59 74 90 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 SEC Installed & new capacity IWPP Installed capacity IPP Installed capacity SWCC Installed capacity Peak Load total capacity Generation capacity (GW) 8

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