By 2020, the Saudi government is planning to create an additional 30,000 MW of generation capacity, Kuwait Financial Centre ( Markaz ) said recently in the executive summary of its infrastructure series covering power, airports, seaports, roads & railways, ICT and water.
In the research note, Markaz said the Saudi government plan to raise generation capacity is part of its plan to ramp up power generation capacity by two fold by 2030.
Many projects are implemented through private participation, the report said, noting that it "is a huge invitation to foreign players to invest in the Kingdom and be a partner, leveraging the opportunities of GCC power grid and Pan Arab power grid."
Markaz also foresees huge investments in the alternative energy space.
The Kingdom is also aiming to have 41,000 MW of solar power capacity in the next two decades
Saudi government has announced plans to establish nuclear power plants. According to King Abdullah City for Atomic and Renewable Energy (KA-CARE), after the successful completion of establishing and commissioning of nuclear power plants, the Kingdom aims at generating 20 percent of its demand through nuclear by the end of 2030. The Kingdom is also aiming to have 41,000 MW of solar power capacity in the next two decades, the report added.
Currently, the report said 49 percent of the power generation is sourced through natural gas and the remaining through liquid fuels with renewables accounting for a negligible share
"We see this situation changing as nuclear and solar power is increasingly seen as an option to satisfy the demand."
Saudi Electricity Company (SEC is the leading power producer in the Kingdom with about 50 operating units across the nation with a capacity of over 40,000 MW. From the period of its inception in 2000, the generation capacity has grown by 2.5 times. SEC is estimating a 46 percent increase in sold energy by 2016 compared to 2010 figures. In 10 years of its inception, total power transmission has increased by almost 50-60 percent and total transmission lines have increased by almost 75 percent. Number of customers under the SEC's operation has also increased by over 70 percent during this period.
Recent developments indicate that SEC is planning fresh investments of close to $100 billion in order to meet the forecasted demand.
The Saudi Gazette