23 July 2011
JEDDAH - The Saudi Electricity Company (SEC) does not have enough financial resources to keep up with the growing power demands in the country, according to Abdul Salam Al-Yemeni, the SEC's Vice President for General Affairs.
Al-Yemeni said one of the greatest challenges facing the local power industry is the growing demand for electricity in the Kingdom which is estimated at eight percent, adding that the international demand ranges between one and two percent. This shows the great deal of money needed for electricity projects.
He said there is a vast difference between the costs of producing power and the consumption tariffs. These factors, including insufficient allocations, have slowed the SEC's ability to meet growing demand.
Another challenge is the shortage of reserve power when it is needed most at peak times in summer.
The country needs a reserve of 10 percent, which requires further financial support for building power generating stations and other infrastructure. The country needs about 45,000 megawatts in summer and about 25,000 megawatts in spring and autumn, according to 2009 statistics.
He said the company has carried out 3,000 projects at a cost of SR180 billion since it was formed in 2000.
He stressed that power cuts are not taking place because of a shortage of electricity, but are a result of purely technical factors or factors outside of the control of the company.
For instance, two months ago, excavations carried out by some contractors resulted in the cutting of an important electricity cable.
He said the government has extended generous aid to the company worth SR51.1 billion to finance the company's projects for the current and following year.
JEDDAH - The Saudi Electricity Company (SEC) does not have enough financial resources to keep up with the growing power demands in the country, according to Abdul Salam Al-Yemeni, the SEC's Vice President for General Affairs.
Al-Yemeni said one of the greatest challenges facing the local power industry is the growing demand for electricity in the Kingdom which is estimated at eight percent, adding that the international demand ranges between one and two percent. This shows the great deal of money needed for electricity projects.
He said there is a vast difference between the costs of producing power and the consumption tariffs. These factors, including insufficient allocations, have slowed the SEC's ability to meet growing demand.
Another challenge is the shortage of reserve power when it is needed most at peak times in summer.
The country needs a reserve of 10 percent, which requires further financial support for building power generating stations and other infrastructure. The country needs about 45,000 megawatts in summer and about 25,000 megawatts in spring and autumn, according to 2009 statistics.
He said the company has carried out 3,000 projects at a cost of SR180 billion since it was formed in 2000.
He stressed that power cuts are not taking place because of a shortage of electricity, but are a result of purely technical factors or factors outside of the control of the company.
For instance, two months ago, excavations carried out by some contractors resulted in the cutting of an important electricity cable.
He said the government has extended generous aid to the company worth SR51.1 billion to finance the company's projects for the current and following year.
© The Saudi Gazette 2011
