BUSINESS OPPORTUNITIES
IN SAUDI POWER SECTOR
U.S. – Saudi Business Opportunities
Forum 5-7 December 2011 Atlanta-U.S.A
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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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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
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DATANo 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)
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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
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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.
OpportunitiesOpportunities
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RECORDED & FORECASTED LOADS RECORDED & FORECASTED LOADS
MW
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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
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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 2016Al-Shogaig 2 PP (? ) 1,200 2017Duba 2 PP ( ? ) 800 2017
2015 Alogair PP 2,600 2018Ras Abigamis 2,600 2019
Total investment US$40 billions
maj or Futur e Gener ation pr oj ects
2012
2013
2014
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Private power production is a partnership .
SEC partnership 20-50 % .
Long term power -off take-purchase agreement.
SEC provides the land and fuel .
30- 40% of future generation will be IPP .
20/80 equity/debt ratio.
Ipp programIpp program
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SUCCESSFUL IPP PROJECTS
SUCCESSFUL IPP PROJECTS Three IPP Projects under development:
1. Rabigh Power Plant (Awarded July2009)• 1200 MW / HFO• INVESTMENT US$ 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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KINGDOM’S INTERCONNECTION STRATEGIC PLANKINGDOM’S INTERCONNECTION STRATEGIC PLAN
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Year Project Length Miles Date in Service
BISHA_DAWASIR +2 substations 320 20155th 380 KV LINE TO CENTRAK 250 2015MADINAH-HAIL 230 2015RIYADH-JEDDAH DC line 500 2016TABUK-TABARGAL +2Substations 380 2016WEST _SOUTH 2ND LINE 320 2016
2014 MADINAH-TABUK DC Line 380 2017
Futur e 380KV tr ansmission l ines pr oj ects
2012
2013
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Year Project Length Miles Date in Service
Tabuk-Tabarjal +Substations 200 2017Umluj-Wadjh +Substations 250 2017South-West 2nd line 300 2018Jouf-Tabarjal 100 2018
2015 Al-grayat- Tabarjal 160 2019
capital cost US$25 Bln
2014
2014
Future 380KV transmission /contd..
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BUSINESS OPPORTUNITIES
As an EPC contractor.
Material and Equipment supply.
Local manufacturing and services.
Participate in IPP projects .
Opportunity in engineering services.
Invest in new and renewable energy.
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High growth in demand will continue 6-7%. 75-80 billion US$ for capital investment. Good opportunities for U.S. companies. Investors have the opportunity .
Yes, Big challenge, But great opportunities !!!
conclusion
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For more information you can visit Saudi Electricity Company web page at :
www.se.com.sa
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19
Generation Capacity generation capacity installed should meet the expected
7% increase in peak demand and a reserve margin.
2006
e
2007
e
2008
e
2009
e
2010
e
2011
e
2012
e
2013
e
2014
e
2015
e
2016
e
2017
e
2018
e
2019
e
2020
e
2021
e
2022
e
2023
e
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
41
59
7490
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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