[2007-06-20]  Saudi Arabia requires $50.6b investment in electricity sector
JEDDAH — Saudi Arabia needs $50.6 billion (SR190 billion) in investments to meet its electricity requirements until 2015, according the Saudi Electricity Company's (SEC) annual report for 2006.


The report, released recently, estimated a 7 per cent annual growth in power demand in the coming five years. It 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. The plan estimates that $50.6 billion (SR190 billion) in total capital investment is required to ensure electricity power stability and implement new power generation and distribution projects," said Mahmoud bin Abdullah Taiba, chairman of the company's board of directors.

By the end of last year, the number of electricity subscribers in the Kingdom rose to 4.95 million, registering a 4.8 per cent growth compared to previous year. In the same period, the company gave power connections to 244,604 new subscribers, and power sales grew by 6.4 per cent to 163,151 gigawatt/hour. The company's generating capacity increased 33 per cent 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 per cent from 29,600 koliometres to 36,889 kilometres.

Saying that at present electricity is available in 10,749 cities, townships and villages across the country, Taiba emphasised SEC's determination to supply electricity in all parts of the Kingdom.

Taiba said the new power generating plants would improve the Kingdom's power supply. On Sunday, the SEC chairman signed a $570.4 million contract with the Jeddah-based Arabian Bemco Contracting Company to establish Al Qurayyah open-cycle power plant.

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