JEDDAH, 18 June 2007 -- Saudi Arabia needs SR190 billion ($50.6 billion) in investment to meet its electricity requirements until the year 2015, according the Saudi Electricity Company's (SEC) annual report for 2006 released recently. The report saw a seven percent annual growth in power demand in the coming five years.
The report attributed the increasing demand for electricity to expansion in economic, industrial, agricultural and real estate projects, necessitating establishment of new power generating plants.
"The SEC has set out a long-term plan taking into consideration the speedy economic developments in the Kingdom," said Mahmoud ibn Abdullah Taiba, chairman of the company's board of directors. "The plan estimates that SR190 billion in total capital investment is required to ensure electricity power stability and implement new power generation and distribution projects," he said.
Taiba emphasized his company's determination to supply electricity in all parts of the Kingdom. At present electricity is available in 10,749 cities, townships and villages across the country, he added.
Taiba said the new power generating plants, which are scheduled to be operational before next summer, would improve the Kingdom's power supply.
The SEC chairman yesterday signed an SR2.139 billion ($570.4 million) contract with the Jeddah-based Arabian Bemco Contracting Company to establish Al-Qurayyah open-cycle power plant.
The project covers construction of infrastructure, erection of the plant's superstructure, civil, mechanical and electrical works, installation of turbines and the rest of plant engineering package.
The gas-fired turbines for the 1900MW plant are being supplied by the General Electric of the United States under a separate contract. For Qurayyah Phase II, a tender is due to be issued by the end of August for the engineering, procurement and construction contract to convert the power plant to combined cycle, bringing its total capacity close to 3,000 MW.
The SEC has given priority to Saudization of jobs. As a result, 83.1 percent of the company's employees are now Saudis, the report said. It also noted the company's efforts to reduce expenditures and increase revenues.
By the end of last year, the number of electricity subscribers in the Kingdom rose to 4.95 million, registering a 4.8 percent growth compared to previous year. The company gave power connection to 244,604 new subscribers last year. Power sales also grew by 6.4 percent last year to 163,151 gigawatt/hour.
The company's generating capacity increased 33 percent from 25,790 megawatt in 2000 to 34,400 megawatt by the end of last year. The total length of power network rose by 25 percent from 29,600 kms to 36,889 kms.
According to Dr. Suhail Abdul Jawad, undersecretary at King Fahd University of Petroleum and Minerals for studies and applied research, the housing sector is the largest consumer of electricity in the Kingdom at 53 percent, followed by the industrial and trade sector at 30 percent.
Addressing a seminar on "Prudent Use of Electricity" organized by the Jeddah Chamber of Commerce and Industry, Abdul Jawad urged the public to use electricity prudently in order to meet the growing demand as a result of population increase as well as economic and industrial development.
By P.K. Abdul Ghafour
© Arab News 2007
