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· Introduction
The kingdom Saudi Arabia is the fastest growing electricity
consumer in the middle east, and the world's 15th largest
consumer of primary energy, of which over 60 percent was
petroleum-based, the remainder was made up of natural gas. 1
Saudi Arabia is a relatively rich and rapidly developing country,
leading to a high increasing demand on electricity by about 15%
annually. 3
In this table we can see the increase of the demand from 2000 to
2015, in 15 years the electricity generation capacity increased
about 3 times more, also we can see an increase of the users by
44%.
2000
2015
25,790
Available Generation Capacity
(MW)
69,154
21,673
Peak Load (MW)
62,260
114,161
Sold Energy (GWh)
285,674
3,622,391
Number of users
8,094,248
According to the Saudi electrical company over the next 25
years they will be equivalent US$117 billion invested by the
government in the country’s power sector.3
When it comes to the power consumption for producing
electricity Saudi Arabia consume about 45% of natural gas, 30%
crude oil, 15% of diesel, and 10% of heavy fuel oil. In 200
power plants all around the country.
The following map shows the power plants in Saudi Arabia
From the 200 power stations there are only 45 power stations
that are major and big enough to produce for the users, the rest
are mostly owned by some certified private sectors and
governmental major buildings providing significantly smaller
capacity of power comparing to the other 45 power stations.
Power Station Name
MW capacity
Energy sources
Output
MWh
CO2kg
Intensity
KgMWh
Shoaiba power plant
4323
Heavy fuel oil
19,100,000
5,765,160,000
302
Rabigh
Power plant “30%”
2661
Crude oil
16,100,000
4,688,290,000
291
Qurayyah Power plant "explosion” 5
2400
Crude oil and Natural gas
13,500,000
5,438,510,000
402
The following table shows the biggest three power stations in
the country and as we can see the energy source for the biggest
one is heavy fuel oil (the Shoaiba power plant). Those power
stations facing issues with the high demand causing overload,
earlier this year of 2016 Qurayyah power plant had an explosion
from the overload and heat led to a fire afterward and power
outages for some users.
Here are some examples of the biggest power stations in Saudi
Arabia 4
Climate
Saudi Arabia is a large country with an area of
2,150,000 km2 (830,000 sq mi). It has a desert climate
characterized by extreme heat during the day, and an abrupt
drop in temperature at night. The highest average wind speed
is 8 mph (gentle breeze) and the lowest average wind speed is 5
mph (light breeze). The daylight om Jun for more than 13 and a
half hours a day and the annual daylight hours’ average in SA
about 12 hours of light a day.2
Here are the average daylight hours in Saudi Arabia
The explosion at Qurayyah Power plan
Current Situation
· System Failures and Errors
The current system has a history of power outages because of
the demand we mentioned. In 2011 Power outages in the capital
Saudi Arabia (Riyadh) along with the Eastern region of the
country due to overload from Jubail industrial city industrial
city, after the incident Saudi electrical company has announced
that they don’t have any problem covering the high demand.6
In July 15, 2010 a major hospital (Specialized Medical Center
Hospital) in the heart of the capital Riyadh has a power outage
twice in the same day along with the around neighborhood from
10:00am to 1:30pm and again from 7:00pm to 11:00. The
hospital had 255 admitted patients, gladly the emergency
generators were able to operate for the sensitive areas such as
the critical care unit and the intensive care hospital crib. But the
hospital wasn’t able to take any patients nor there were more
than 15 ambulances outside the hospital to move the patients to
different hospitals. The following photos shows patients
families, the ambulances and the backup power generators.
In June 2014 far south of the country seven people died five for
them wear newborn babies and kidney patients because of a
power outage last for days. The power was cut because of
attack from Yemen, and the backup generators weren’t able to
work. 8
In 2009 factories in the west side of the country Jeddah blamed
the Saudi electrical company for 12 power cuts in one month, in
respond the Saudi electrical company announced that “the
power cut was intentional since the because of the high load we
have to make sure the major users such as hospitals are more
important have power than the factories” those power cuts coast
the factories about US $135 million.9
· System Cost
The use of oil and natural gas is dramatically increasing in the
country, according to the Organization of the Petroleum
Exporting Countries “OPEC” daily needs in Saudi Arabia is
about 3.1 million oil barrels a day and from May 2013 until
May 2014 had an estimated increase by 274,000 oil barrels a
day. And for the natural gas the daily use was equivalent to 1.9
million oil barrels a day. Leading to a total estimated use of 5
million oil barrels a day. One third of that oil is used for
electricity. 10
In the following graph it shows the usage of oil and natural gas,
and as we can see if nothing changes we might be approaching
around 7 million oil barrels a day. It has increased 7% yearly,
and about nine times more since 1970.
The consumption of Saudi Arabia in 2013 was about 5 million
barrels a day that’s as much as the US, China, Russia, Japan and
India in which those countries have 5 to 40 times more
population than Saudi Arabia.
Usage per person = 40 times the average usage
In 2013 the annual support to the energy sector from the
government was about US$120 billion worth of fuel, US$40
billion worth of fuel was for the electricity sector only.10 This
generous support from the government lead to what the experts
called oil addiction.
· Environmental issues
In Saudi Arabia the generation of electricity is 100% of non-
renewable resources. generation of electricity power from non-
renewable resources produces more pollution than any other
single industry, due to the use of fossil fuels such as crude oil,
coal and natural gas. The 70k mw of electricity produces about
93 million tons of carbon emissions annually.
The pollution caused by generating electricity in Saudi Arabia
is effecting the sea water, the air and the soil. Based on
perceptions of visitors of a website called NUMBEO, the
website gathers numerical facts about all countries around the
world in the past 3 years. Saudi Arabia has water pollution by
adding chemical materials to the cooling water drained back to
the sea and the degree of cooling water drained into the sea in a
scale of (0-100) = 62.50%, If the value is 0, it means it is
perceived as very low, and if the value is 100, it means it is
perceived as very high.
The air pollution caused by the emission of air-polluting gases
and pollutants through the chimneys of the generation units.
The 70k mw of electricity produces about 93 million tons of
carbon emissions annually in SA. On the same scale the air
pollution is 85.71% in Saudi. 12
Add to that the Soil Contamination by power transformers that
use oils containing carcinogenic substances such as
polychlorinated biphenyl (PCB) and spills, leakages. PCB are
group of man-made compounds that were widely used in the
past mainly in electrical equipment, was banded at the end of
the 1970s in many countries because of the environment
concern.22
The following table shows the air pollutant emissions by fuel
type, amount of pollution using natural gas, oil and coal. In SA
most of the major electricity power plants use oil in which as
showing on the table has the more negative impact comparing to
natural gas.
Fossil Fuel Emission Levels– Pounds per Billion Btu of Energy
Input
Pollutant
Natural Gas
Oil
Coal
Carbon Dioxide (CO2)
117,000
164,000
208,000
Carbon Monoxide (CO)
40
33
208
Nitrogen Oxides (NOx)
92
448
457
Sulfur Dioxide (SO2)
1
1,122
2,591
Particulates
7
84
2,744
Mercury
0.000
0.007
0.016
Source: EIA – Natural Gas Issues and Trends 1998 11
Note:(Btu or BTU) is the British thermal unit it is a traditional
unit of work equal to about 1055 joules.
· Monopolizing the Electricity
There is an absolute monopoly in Saudi Arabia for the four
major sectors the electricity by the Saudi Electrical Company,
the water by the National Water Company, the public
transportation by Saudi transport Aljmaay and the natural gas
by the gas and industrialization company. This monopoly causes
high pricing for customers, low level of service and big
challenge to those companies to cover the high demand and the
fast growth.
The telecom and communication was monopolized 100% by the
Saudi Telecom Company (STC). STC was providing very
expensive service for the users and it had very bad network
coverage around the country, until 2004 when the government
allowed another companies to share the market. Two big
telecoms company joined the market since (Mobily shares 38%
of the market) and (Zain shares 17.3% of the market) and STC
got to keep 44.4% of the market. This market share resulted to a
great service and coverage and most importantly it didn’t hurt
STC value nor there was a dramatic increase in their stock value
from US$130 in 2004 to US$326.9 in 2006 (the highest price in
the company history). And the prices for the service dropped
down by 75% for the customers. Also having those two
companies has opened a lot of job opportunities for the Saudi
citizen, those two companies have 59,000 employees in total.
The Saudi Electricity Company “SEC” is the only electricity
generator and provider in Saudi Arabia and they are the only
ones who are authorized to sell electricity to the user. In 2012,
the country demand for electricity was about 56k MW, where
Saudi electrical company where able to deliver 54k MW (2000
MW short). So the user is forced to deal with only electricity
provider that provides low level of service and the high cost to
the user. This kind of monopoly is hurting SEC and the nation
economy, where SEC thinks it is more profitable. Based on the
SEC the company has no future plans for any long term plans or
renewable energy plans to cover the high demand expect some
integration to its current plants.
· Problem Summary
Saudi Arabia is growing fast, so it needs a sustainable reliable
electricity sources that can cover the continuous increase need
of electricity and it should be safe for the customer with no
errors or power outages. The current system seems to be failing
to achieves covering the increases of 15% annually on the
demand.
So, when the demand is not covered a causing major power
outages that are affecting the user’s life in hospitals as we
mentioned in the previous examples in Riyadh and the south
part of the country, also the intentional power cut by SEC to
factories on the west side of the country Jeddah because of the
lack of power capacity costing those factories a lot of money.
The current system is costing the government a lot of money
and fuel, and the current system has a big daily increase of
(274,000 oil barrels a day) in using fuel.
There is only one provider (Saudi Electric company) to the
customer in our system
leaving zero room for competition for better quality, and
causing high billing prices for the users. This kind of Monopoly
is giving SEC no motive to use any new technology since they
are the only one in business.
Our current system has a very high negative impact on the
environment, since the system is using heavy fuel oil, crude oil,
and natural gas. The percentage we mentioned earlier that says
45% of the 200 stations uses natural gas is based on the number
of the plants, but looking closely the system uses heavy fuel oil
and diesel more than natural gas since its used in the major big
power plants. This system is causing water pollution, air
pollution, oil contamination and also affecting our food
indirectly.
· System Stakeholders
· The Government.
The Saudi government is the biggest stakeholder since it’s the
main financial funder to our system, it provides all the financial
support to the whole power sectors. It owns 74.3% from the
Saudi Electrical company. The government also is the biggest
user for the system paying the bills for the governmental
buildings, public hospitals, and public schools etc. Meaning that
it is the only stakeholder that can make all the major changes in
our system.
· Saudi Electricity Company (SEC)
Saudi Electricity Company is the only electrical grid provider,
it monopolizes the generation, transmission and distribution
through 45 major power generation plants in the country, with
more than 41,000 employees.
· The Ministry of Energy Industry and Minerals.
The ministry is primarily responsible for the policies
concerning oil, gas and natural minerals in the country which is
the world's largest holder of crude oil reserves. It closely
monitors the activities of the Saudi Aramco together with the
Supreme Council for Petroleum and Minerals. The ministry has
the function of developing and implementing policies
concerning petroleum and related products. The Ministry mainly
provides the fossil fuel for our system.
· The Ministry of Environment, Water and Agriculture.
(MOWE)
The ministry role is indicating the user by running awareness
campaigns for water and electricity consumption, also provides
some environmental facts. The MOWE started water saving
awareness campaign called (resolution in your hand) and the
National campaign to rationalization the consumption of
electricity on their website, but unfortunately the link for those
campaigns does not work.
· Users.
The electricity buyers and consumers, and based on SEC they
are 5 categories of the consumers/users and the pricing is
different for each category
1. Residential. (Houses, apartments…etc.)
2. Commercial. (malls, shops, restaurants...etc.)
3. Arboriculture and charities. (forms, nonprofit
organizations…etc.)
4. Governmental. (ministries buildings, public schools, public
hospitals…etc.)
5. Industrial, private educational facilities, private medical
facilities.
The following table shows the most updated the pricing for the
user based on the category
10 Halalah = US$ 2.6*10-2
· System’s Requirements
In this section I will talk about our new system’s requirements.
Systems requirements shall include those tasks that go into
determining the needs or conditions to meet our alternatives,
taking account of the possibly conflicting requirements of the
various stakeholders, analyzing, documenting, validating and
managing the system’s requirements.
Our new system, shall manage and decrease power cuts from
overload by 100% within 5 years, have zero negative impact on
the user by having a fast responding safe exit, decrease the oil
and gas demand for generating electricity in the country as low
as 5% by 2050, promote the use of the clean energy for the user,
rely 100% on clean energy by 2050, be open for renewable
energy investors to provide of-grid solutions directly to the
user, be environmentally friendly by cutting use of oil, gas in
the country by one third, have strict environmental regulations
for the process of generating electricity, help reduce 13 million
tons of carbon emissions annually by 2019, and be profitable by
selling energy to countries around Saudi Arabia by 2050.
· Requirements analysis
Requirements analysis is critical to the success or failure of the
system. Our requirements should be documented, actionable,
measurable, testable, traceable. In order to do so we in the next
section we will verify and validate those requirements.
Requirements verification and validation
1) System shall relay 100% on clean energy by 2050 “the green
phase”
Demonstration
In order to have a System that relies 100% on clean energy by
2050, our stakeholder the Saudi electric company has the
biggest role since they are the only electricity provider and
knows the grid system inside out. SEC should have a long/short
term transformation plan, the transformation plan is divided into
four phases. As follow:
· First phase shall have 14% of total power output from clean
energy by 2019, 14% of the country needs =10,000 megawatts.
· Second phase shall have 25% of total power output from clean
energy by 2021, by integrating the first phase to a power
capacity of 17,500 megawatts.
· Third phase shall have 75% of total power output from clean
energy by 2030, by building more renewable power plants with
power capacity of 35 megawatts.
· Fourth phase (The green phase) shall have 100% of total
power output from clean energy by 2050 by integrating the
previous phases and building more renewable power plants with
power capacity of that shall cover overcome the demand in
2050.
Inspection
· SEC should preform continuous technical inspection to the
power plants through all the phases
· SEC should perform random safety inspection multiple times a
year.
Testing
· Testing is a major concept that should be apply in every single
phase of the project it’s a continuous process within the life
cycle, starting from the requirements to design to performance
for the power plants should be performed after every single
phase, and should be reported to other stakeholders along with
an annual performance report by SEC.
2) The system shall manage and eliminate power cuts caused by
overload at 100% within 5 years.
Demonstration
By 2019 we should have our first phase operating, our first
phase will cover 14% of the demand that should prevent at least
90% of the power cut, and by 2021 we should have our second
phase operating which should lead to 100% prevention of power
cuts.
3) The system shall decrease the oil and gas demand for
generating electricity in the country as low as 2% by 2050.
Demonstration
· The clean energy plants will not use any type oil or gas since
they run by renewable source of energy.
· The 2% should be used for backup power generators and
portable power generators.
4) The system shall be profitable by selling energy to countries
around Saudi Arabia by 2050
Demonstration
By 2050 the system shall have more capacity that can make SA
sell the extra power to the neighbor countries that shares border
with, where SA has the advantage of big empty lands and strong
economy compare to the neighbor countries, which means the
ability for more power plants.
5) The system shall promote the use of the clean energy for the
users.
Demonstration
The government should provide financing option with zero
interest rate to motivate the user who wants to have of-grid
clean energy.
The ministry of environment, water and agriculture will have
more affective campaigns about clean energy to educate the user
more about it, and to show the different options of clean energy.
For example, the user should know that he actually can save
money by selling electricity to the grid (SEC) and make the
meter run backward.
6) The system shall be open for renewable energy investors to
provide off-grid solutions directly to the user.
Demonstration
The government shall open the electricity market for renewable
energy providers just like the telecom and communication
example we mentioned. The government also shall support
renewable energy companies and provide the permits needed for
them. On the other hand, SEC should welcome renewable
energy providers and share expertise for the country’s good.
7) The system shall have shall have zero negative impact on the
user by having fast responding safe exit
Demonstration
The Ministry of Environment, Water and Agriculture will
provide training and awareness campaigns for the user about
safety regulation and fire prevention. SEC shall work on high
safety standards for distributing the electricity to the user and
always have an emergency plan. The government will set strict
safety rules for SEC, subject to big fines in case of violation.
And SEC shall have some clear safety instruction for the users,
subject to big fines in case of violation.
Inspection
· The government will perform random safety inspection on
SEC.
· SEC will perform random safety inspection on their plants
multiple times a year.
·
8) The system shall be environmentally friendly
Demonstration
The new system will be environmentally friendly by cutting the
usage of oil, coals and natural gas. That means eliminating the
burning that pollutes the air, the chemicals and the cooling
water drained to the sea, and soil contamination from spills and
leakages
9) The system shall help reduce 13 million tons of carbon
emissions annually by 2019
Demonstration
The new system will have zero carbon emissions since it’s not
using any fossil fuel.
Analysis
· The first phase will produce clean 10,000 mw which will
prevent 13 million tons of carbon emissions a year.
10) The system shall have strict environmental regulations for
the process of generating electricity.
Demonstration
The Ministry of Environment, Water and Agriculture should
will have big fines applies to the user and SEC in case of the
violation of the environmental regulation.
Inspection
· The Ministry of Environment, Water and Agriculture should
perform a regular environmental inspection on SEC power
plants.
· Alternative
Solution
s
In this section we came up with our possible alternatives based
on our system requirements which are: expanding the current
system by building more power stations similar to what we
have, providing and promoting “Off-Grid” renewable energy
solutions to the users, and using new technology called
concentrated solar power (CSP). I will talk about each
alternative solution and explain more about the technology of
each one of them along with measures of effectiveness.
Alternative 1: More power stations (expanding the current
system)
SEC is already taking this path by integrating the current power
stations and building more power stations that uses (natural gas,
oil and coal...etc.), but there is a major environmental issue
when it comes to those kind of plants.
For example, when we talk about the coal plants which are
considered the cheapest electrical power plants to build, we are
talking about tremendous amount air pollution from burning
coal causing smog, soot, acid rain, global warming, and toxic
air emissions. Also the wastes generated by those plants such as
ash, sludge, toxic chemicals, and waste heat that create more
environmental problems. Coal also doesn’t pay for the carbon
emissions that contribute to global warming; coal is the biggest
single culprit in carbon emissions.14
Alternative 2: Renewable Energy
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· IntroductionThe kingdom Saudi Arabia is the fastest growing el.docx

  • 1. · Introduction The kingdom Saudi Arabia is the fastest growing electricity consumer in the middle east, and the world's 15th largest consumer of primary energy, of which over 60 percent was petroleum-based, the remainder was made up of natural gas. 1 Saudi Arabia is a relatively rich and rapidly developing country, leading to a high increasing demand on electricity by about 15% annually. 3 In this table we can see the increase of the demand from 2000 to 2015, in 15 years the electricity generation capacity increased about 3 times more, also we can see an increase of the users by 44%. 2000 2015 25,790 Available Generation Capacity (MW) 69,154 21,673 Peak Load (MW) 62,260 114,161 Sold Energy (GWh) 285,674 3,622,391 Number of users 8,094,248 According to the Saudi electrical company over the next 25 years they will be equivalent US$117 billion invested by the government in the country’s power sector.3 When it comes to the power consumption for producing
  • 2. electricity Saudi Arabia consume about 45% of natural gas, 30% crude oil, 15% of diesel, and 10% of heavy fuel oil. In 200 power plants all around the country. The following map shows the power plants in Saudi Arabia From the 200 power stations there are only 45 power stations that are major and big enough to produce for the users, the rest are mostly owned by some certified private sectors and governmental major buildings providing significantly smaller capacity of power comparing to the other 45 power stations. Power Station Name MW capacity Energy sources Output MWh CO2kg Intensity KgMWh Shoaiba power plant 4323 Heavy fuel oil 19,100,000 5,765,160,000 302 Rabigh Power plant “30%” 2661 Crude oil 16,100,000 4,688,290,000 291 Qurayyah Power plant "explosion” 5 2400 Crude oil and Natural gas 13,500,000
  • 3. 5,438,510,000 402 The following table shows the biggest three power stations in the country and as we can see the energy source for the biggest one is heavy fuel oil (the Shoaiba power plant). Those power stations facing issues with the high demand causing overload, earlier this year of 2016 Qurayyah power plant had an explosion from the overload and heat led to a fire afterward and power outages for some users. Here are some examples of the biggest power stations in Saudi Arabia 4 Climate Saudi Arabia is a large country with an area of 2,150,000 km2 (830,000 sq mi). It has a desert climate characterized by extreme heat during the day, and an abrupt drop in temperature at night. The highest average wind speed is 8 mph (gentle breeze) and the lowest average wind speed is 5 mph (light breeze). The daylight om Jun for more than 13 and a half hours a day and the annual daylight hours’ average in SA about 12 hours of light a day.2 Here are the average daylight hours in Saudi Arabia The explosion at Qurayyah Power plan Current Situation · System Failures and Errors The current system has a history of power outages because of the demand we mentioned. In 2011 Power outages in the capital Saudi Arabia (Riyadh) along with the Eastern region of the country due to overload from Jubail industrial city industrial city, after the incident Saudi electrical company has announced that they don’t have any problem covering the high demand.6 In July 15, 2010 a major hospital (Specialized Medical Center
  • 4. Hospital) in the heart of the capital Riyadh has a power outage twice in the same day along with the around neighborhood from 10:00am to 1:30pm and again from 7:00pm to 11:00. The hospital had 255 admitted patients, gladly the emergency generators were able to operate for the sensitive areas such as the critical care unit and the intensive care hospital crib. But the hospital wasn’t able to take any patients nor there were more than 15 ambulances outside the hospital to move the patients to different hospitals. The following photos shows patients families, the ambulances and the backup power generators. In June 2014 far south of the country seven people died five for them wear newborn babies and kidney patients because of a power outage last for days. The power was cut because of attack from Yemen, and the backup generators weren’t able to work. 8 In 2009 factories in the west side of the country Jeddah blamed the Saudi electrical company for 12 power cuts in one month, in respond the Saudi electrical company announced that “the power cut was intentional since the because of the high load we have to make sure the major users such as hospitals are more important have power than the factories” those power cuts coast the factories about US $135 million.9
  • 5. · System Cost The use of oil and natural gas is dramatically increasing in the country, according to the Organization of the Petroleum Exporting Countries “OPEC” daily needs in Saudi Arabia is about 3.1 million oil barrels a day and from May 2013 until May 2014 had an estimated increase by 274,000 oil barrels a day. And for the natural gas the daily use was equivalent to 1.9 million oil barrels a day. Leading to a total estimated use of 5 million oil barrels a day. One third of that oil is used for electricity. 10 In the following graph it shows the usage of oil and natural gas, and as we can see if nothing changes we might be approaching around 7 million oil barrels a day. It has increased 7% yearly, and about nine times more since 1970. The consumption of Saudi Arabia in 2013 was about 5 million barrels a day that’s as much as the US, China, Russia, Japan and India in which those countries have 5 to 40 times more population than Saudi Arabia. Usage per person = 40 times the average usage In 2013 the annual support to the energy sector from the government was about US$120 billion worth of fuel, US$40 billion worth of fuel was for the electricity sector only.10 This generous support from the government lead to what the experts called oil addiction. · Environmental issues In Saudi Arabia the generation of electricity is 100% of non- renewable resources. generation of electricity power from non- renewable resources produces more pollution than any other single industry, due to the use of fossil fuels such as crude oil, coal and natural gas. The 70k mw of electricity produces about
  • 6. 93 million tons of carbon emissions annually. The pollution caused by generating electricity in Saudi Arabia is effecting the sea water, the air and the soil. Based on perceptions of visitors of a website called NUMBEO, the website gathers numerical facts about all countries around the world in the past 3 years. Saudi Arabia has water pollution by adding chemical materials to the cooling water drained back to the sea and the degree of cooling water drained into the sea in a scale of (0-100) = 62.50%, If the value is 0, it means it is perceived as very low, and if the value is 100, it means it is perceived as very high. The air pollution caused by the emission of air-polluting gases and pollutants through the chimneys of the generation units. The 70k mw of electricity produces about 93 million tons of carbon emissions annually in SA. On the same scale the air pollution is 85.71% in Saudi. 12 Add to that the Soil Contamination by power transformers that use oils containing carcinogenic substances such as polychlorinated biphenyl (PCB) and spills, leakages. PCB are group of man-made compounds that were widely used in the past mainly in electrical equipment, was banded at the end of the 1970s in many countries because of the environment concern.22 The following table shows the air pollutant emissions by fuel type, amount of pollution using natural gas, oil and coal. In SA most of the major electricity power plants use oil in which as showing on the table has the more negative impact comparing to natural gas. Fossil Fuel Emission Levels– Pounds per Billion Btu of Energy Input Pollutant
  • 7. Natural Gas Oil Coal Carbon Dioxide (CO2) 117,000 164,000 208,000 Carbon Monoxide (CO) 40 33 208 Nitrogen Oxides (NOx) 92 448 457 Sulfur Dioxide (SO2) 1 1,122 2,591 Particulates 7 84 2,744 Mercury 0.000 0.007 0.016 Source: EIA – Natural Gas Issues and Trends 1998 11 Note:(Btu or BTU) is the British thermal unit it is a traditional unit of work equal to about 1055 joules. · Monopolizing the Electricity There is an absolute monopoly in Saudi Arabia for the four major sectors the electricity by the Saudi Electrical Company, the water by the National Water Company, the public transportation by Saudi transport Aljmaay and the natural gas by the gas and industrialization company. This monopoly causes
  • 8. high pricing for customers, low level of service and big challenge to those companies to cover the high demand and the fast growth. The telecom and communication was monopolized 100% by the Saudi Telecom Company (STC). STC was providing very expensive service for the users and it had very bad network coverage around the country, until 2004 when the government allowed another companies to share the market. Two big telecoms company joined the market since (Mobily shares 38% of the market) and (Zain shares 17.3% of the market) and STC got to keep 44.4% of the market. This market share resulted to a great service and coverage and most importantly it didn’t hurt STC value nor there was a dramatic increase in their stock value from US$130 in 2004 to US$326.9 in 2006 (the highest price in the company history). And the prices for the service dropped down by 75% for the customers. Also having those two companies has opened a lot of job opportunities for the Saudi citizen, those two companies have 59,000 employees in total. The Saudi Electricity Company “SEC” is the only electricity generator and provider in Saudi Arabia and they are the only ones who are authorized to sell electricity to the user. In 2012, the country demand for electricity was about 56k MW, where Saudi electrical company where able to deliver 54k MW (2000 MW short). So the user is forced to deal with only electricity provider that provides low level of service and the high cost to the user. This kind of monopoly is hurting SEC and the nation economy, where SEC thinks it is more profitable. Based on the SEC the company has no future plans for any long term plans or renewable energy plans to cover the high demand expect some integration to its current plants.
  • 9. · Problem Summary Saudi Arabia is growing fast, so it needs a sustainable reliable electricity sources that can cover the continuous increase need of electricity and it should be safe for the customer with no errors or power outages. The current system seems to be failing to achieves covering the increases of 15% annually on the demand. So, when the demand is not covered a causing major power outages that are affecting the user’s life in hospitals as we mentioned in the previous examples in Riyadh and the south part of the country, also the intentional power cut by SEC to factories on the west side of the country Jeddah because of the lack of power capacity costing those factories a lot of money. The current system is costing the government a lot of money and fuel, and the current system has a big daily increase of (274,000 oil barrels a day) in using fuel. There is only one provider (Saudi Electric company) to the customer in our system leaving zero room for competition for better quality, and causing high billing prices for the users. This kind of Monopoly is giving SEC no motive to use any new technology since they are the only one in business.
  • 10. Our current system has a very high negative impact on the environment, since the system is using heavy fuel oil, crude oil, and natural gas. The percentage we mentioned earlier that says 45% of the 200 stations uses natural gas is based on the number of the plants, but looking closely the system uses heavy fuel oil and diesel more than natural gas since its used in the major big power plants. This system is causing water pollution, air pollution, oil contamination and also affecting our food indirectly. · System Stakeholders · The Government. The Saudi government is the biggest stakeholder since it’s the main financial funder to our system, it provides all the financial support to the whole power sectors. It owns 74.3% from the Saudi Electrical company. The government also is the biggest user for the system paying the bills for the governmental buildings, public hospitals, and public schools etc. Meaning that it is the only stakeholder that can make all the major changes in our system. · Saudi Electricity Company (SEC) Saudi Electricity Company is the only electrical grid provider, it monopolizes the generation, transmission and distribution through 45 major power generation plants in the country, with
  • 11. more than 41,000 employees. · The Ministry of Energy Industry and Minerals. The ministry is primarily responsible for the policies concerning oil, gas and natural minerals in the country which is the world's largest holder of crude oil reserves. It closely monitors the activities of the Saudi Aramco together with the Supreme Council for Petroleum and Minerals. The ministry has the function of developing and implementing policies concerning petroleum and related products. The Ministry mainly provides the fossil fuel for our system. · The Ministry of Environment, Water and Agriculture. (MOWE) The ministry role is indicating the user by running awareness campaigns for water and electricity consumption, also provides some environmental facts. The MOWE started water saving awareness campaign called (resolution in your hand) and the National campaign to rationalization the consumption of electricity on their website, but unfortunately the link for those campaigns does not work. · Users. The electricity buyers and consumers, and based on SEC they are 5 categories of the consumers/users and the pricing is different for each category 1. Residential. (Houses, apartments…etc.) 2. Commercial. (malls, shops, restaurants...etc.) 3. Arboriculture and charities. (forms, nonprofit organizations…etc.) 4. Governmental. (ministries buildings, public schools, public
  • 12. hospitals…etc.) 5. Industrial, private educational facilities, private medical facilities. The following table shows the most updated the pricing for the user based on the category 10 Halalah = US$ 2.6*10-2 · System’s Requirements In this section I will talk about our new system’s requirements. Systems requirements shall include those tasks that go into determining the needs or conditions to meet our alternatives, taking account of the possibly conflicting requirements of the various stakeholders, analyzing, documenting, validating and managing the system’s requirements. Our new system, shall manage and decrease power cuts from overload by 100% within 5 years, have zero negative impact on the user by having a fast responding safe exit, decrease the oil and gas demand for generating electricity in the country as low as 5% by 2050, promote the use of the clean energy for the user, rely 100% on clean energy by 2050, be open for renewable energy investors to provide of-grid solutions directly to the user, be environmentally friendly by cutting use of oil, gas in the country by one third, have strict environmental regulations for the process of generating electricity, help reduce 13 million tons of carbon emissions annually by 2019, and be profitable by selling energy to countries around Saudi Arabia by 2050.
  • 13. · Requirements analysis Requirements analysis is critical to the success or failure of the system. Our requirements should be documented, actionable, measurable, testable, traceable. In order to do so we in the next section we will verify and validate those requirements. Requirements verification and validation 1) System shall relay 100% on clean energy by 2050 “the green phase” Demonstration In order to have a System that relies 100% on clean energy by 2050, our stakeholder the Saudi electric company has the biggest role since they are the only electricity provider and knows the grid system inside out. SEC should have a long/short term transformation plan, the transformation plan is divided into four phases. As follow: · First phase shall have 14% of total power output from clean energy by 2019, 14% of the country needs =10,000 megawatts. · Second phase shall have 25% of total power output from clean energy by 2021, by integrating the first phase to a power capacity of 17,500 megawatts. · Third phase shall have 75% of total power output from clean energy by 2030, by building more renewable power plants with power capacity of 35 megawatts. · Fourth phase (The green phase) shall have 100% of total power output from clean energy by 2050 by integrating the previous phases and building more renewable power plants with power capacity of that shall cover overcome the demand in 2050. Inspection · SEC should preform continuous technical inspection to the power plants through all the phases · SEC should perform random safety inspection multiple times a year.
  • 14. Testing · Testing is a major concept that should be apply in every single phase of the project it’s a continuous process within the life cycle, starting from the requirements to design to performance for the power plants should be performed after every single phase, and should be reported to other stakeholders along with an annual performance report by SEC. 2) The system shall manage and eliminate power cuts caused by overload at 100% within 5 years. Demonstration By 2019 we should have our first phase operating, our first phase will cover 14% of the demand that should prevent at least 90% of the power cut, and by 2021 we should have our second phase operating which should lead to 100% prevention of power cuts. 3) The system shall decrease the oil and gas demand for generating electricity in the country as low as 2% by 2050. Demonstration · The clean energy plants will not use any type oil or gas since they run by renewable source of energy. · The 2% should be used for backup power generators and portable power generators. 4) The system shall be profitable by selling energy to countries around Saudi Arabia by 2050 Demonstration By 2050 the system shall have more capacity that can make SA sell the extra power to the neighbor countries that shares border with, where SA has the advantage of big empty lands and strong economy compare to the neighbor countries, which means the ability for more power plants. 5) The system shall promote the use of the clean energy for the users.
  • 15. Demonstration The government should provide financing option with zero interest rate to motivate the user who wants to have of-grid clean energy. The ministry of environment, water and agriculture will have more affective campaigns about clean energy to educate the user more about it, and to show the different options of clean energy. For example, the user should know that he actually can save money by selling electricity to the grid (SEC) and make the meter run backward. 6) The system shall be open for renewable energy investors to provide off-grid solutions directly to the user. Demonstration The government shall open the electricity market for renewable energy providers just like the telecom and communication example we mentioned. The government also shall support renewable energy companies and provide the permits needed for them. On the other hand, SEC should welcome renewable energy providers and share expertise for the country’s good. 7) The system shall have shall have zero negative impact on the user by having fast responding safe exit Demonstration The Ministry of Environment, Water and Agriculture will provide training and awareness campaigns for the user about safety regulation and fire prevention. SEC shall work on high safety standards for distributing the electricity to the user and always have an emergency plan. The government will set strict safety rules for SEC, subject to big fines in case of violation. And SEC shall have some clear safety instruction for the users, subject to big fines in case of violation. Inspection · The government will perform random safety inspection on SEC. · SEC will perform random safety inspection on their plants
  • 16. multiple times a year. · 8) The system shall be environmentally friendly Demonstration The new system will be environmentally friendly by cutting the usage of oil, coals and natural gas. That means eliminating the burning that pollutes the air, the chemicals and the cooling water drained to the sea, and soil contamination from spills and leakages 9) The system shall help reduce 13 million tons of carbon emissions annually by 2019 Demonstration The new system will have zero carbon emissions since it’s not using any fossil fuel. Analysis · The first phase will produce clean 10,000 mw which will prevent 13 million tons of carbon emissions a year. 10) The system shall have strict environmental regulations for the process of generating electricity. Demonstration The Ministry of Environment, Water and Agriculture should will have big fines applies to the user and SEC in case of the violation of the environmental regulation. Inspection · The Ministry of Environment, Water and Agriculture should perform a regular environmental inspection on SEC power plants.
  • 17. · Alternative Solution s In this section we came up with our possible alternatives based on our system requirements which are: expanding the current system by building more power stations similar to what we have, providing and promoting “Off-Grid” renewable energy solutions to the users, and using new technology called concentrated solar power (CSP). I will talk about each
  • 18. alternative solution and explain more about the technology of each one of them along with measures of effectiveness. Alternative 1: More power stations (expanding the current system) SEC is already taking this path by integrating the current power stations and building more power stations that uses (natural gas, oil and coal...etc.), but there is a major environmental issue when it comes to those kind of plants. For example, when we talk about the coal plants which are considered the cheapest electrical power plants to build, we are talking about tremendous amount air pollution from burning coal causing smog, soot, acid rain, global warming, and toxic air emissions. Also the wastes generated by those plants such as ash, sludge, toxic chemicals, and waste heat that create more environmental problems. Coal also doesn’t pay for the carbon emissions that contribute to global warming; coal is the biggest single culprit in carbon emissions.14 Alternative 2: Renewable Energy