1. BUSINESS OPPORTUNITIES
IN SAUDI POWER SECTOR
U.S. – Saudi
Business Opportunities Forum
5-7 December 2011
Atlanta-U.S.A
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2. Electricity Industry 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 .
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3. SAUDI power sector TODAY
 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 .
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4. GROWTH (2001 – 2011)
No of customer Peak load Available Transmission Energy
DATA (GWH)
( Million) (MW) generation (MW) (KM)
2001 3.6 23000 24000 30000 114000
2011 6.2 47000 52000 48000 240000
Growth
(%) 72% 105% 102% 65% 101%
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5. CHALLENGES
 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.
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6. Opportunities
 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.
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7. RECORDED & FORECASTED LOADS
MW
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8. FUTURE CAPITAL INVESTMENT
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
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9. major Future Generation projects
Year Project name Capacity (MW) Date in Service
Jeddah South PP (EPC) steam 2,600 2015
2012
Rabigh 2 PP( IPP) steam 1,200 2015
Dheba PP (IPP) ccpp+steam 1,800 2015
2013
Gizan pp (EPC) steam 2,600 2016
Ras Alkhair pp (IPP) 2,600 2016
2014 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$40 billions
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10. Ipp program
 Private power production is a partnership .
 SEC partnership 20-50 % .
 Long term power -off take-purchase agreement.
 SEC provides the land and fuel .
 30- 40% of future generation will be IPP .
 20/80 equity/debt ratio.
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11. SUCCESSFUL IPP PROJECTS
 Three IPP Projects under development:
1. Rabigh Power Plant (Awarded July2009)
• 1200 MW / HFO
• INVESTMENT US$ 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%
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12. KINGDOM’S INTERCONNECTION STRATEGIC PLAN
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13. Future 380KV transmission lines projects
Year Project Length Miles Date in Service
BISHA_DAWASIR +2 substations 320 2015
2012 5th 380 KV LINE TO CENTRAK 250 2015
MADINAH-HAIL 230 2015
RIYADH-JEDDAH DC line 500 2016
2013 TABUK-TABARGAL +2Substations 380 2016
WEST _SOUTH 2ND LINE 320 2016
2014 MADINAH-TABUK DC Line 380 2017
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14. Future 380KV transmission /contd..
Year Project Length Miles Date in Service
Tabuk-Tabarjal +Substations 200 2017
2014
Umluj-Wadjh +Substations 250 2017
South-West 2nd line 300 2018
2014
Jouf-Tabarjal 100 2018
2015 Al-grayat- Tabarjal 160 2019
capital cost US$25 Bln
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15. BUSINESS OPPORTUNITIES
As an EPC contractor.
Material and Equipment supply.
Local manufacturing and services.
Participate in IPP projects .
Opportunity in engineering services.
Invest in new and renewable energy.
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16. conclusion
 High growth in demand will continue 6-7%.
 75-80 billion US$ for capital investment.
 Good opportunities for U.S. companies.
 Investors have the opportunity .
Yes, Big challenge, But great opportunities !!!
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17. For more information you can visit
Saudi Electricity Company web
page at :
www.se.com.sa
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18. 19

19. Generation Capacity
generation capacity installed should meet the expected
7% increase in peak demand and a reserve margin.
Generation capacity (GW)
100000
90
90000
74
80000
70000
59
60000
50000 41
40000
30000
20000
10000
0
SEC Installed & new capacity IWPP Installed capacity IPP Installed capacity SWCC Installed capacity Peak Load total capacity
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