US-Saudi
BUSINESS OPPORTUNITIES FORUM
CHICAGO April 28-29, 2010
Ali Albarrak
President &C E O
Saudi Electricity Company


Starts as 100%private ownership and operation.

Late 70`S consolidated into four major power co
(SCECO).

The government involved as major shareholder .

Mid 2000 All operating entities merged in one company
S audi E lectricity C ompany ( SEC ).

SAUDI ELECTRICITY COMPANY

Incorporated from 10 operating utilities in 2000.

Largest electric entity in the region in terms of capacity ,market capital and shareholder’s equity.

Owns 85% generation and 100% transmission , distribution and retail .

Total assets over 50 billion US$.

Annual revenues 6 Billion US$ .

Annual growth 6%.

74% directly owned by the Government.

 High growth in demand ( 7- 8%).
 Operate in a very supportive environment .
 High credit rating (AA~ ).
 Invest in productive assets.
 Reliable and secured fuel supply.
 government support.

GROWTH (2000 – 2009 )
DATA
No of customer
( Million )
Peak load
(MW)
Available generation
(MW)
Transmis
Energy sion
(GWH )
(KM )
2000 3.6
22000 22000 30000 114000
2009 5.7
Increase 2.1
Growth
(%)
58%
43000 45000 47000 191000
21000 23000 17000 77000
95% 104% 57% 67%

projects Under Execution
ACTIVITIES No of Projects
COST
( billion $)
GENERATION 174 17.3
TRANSMISSION
DISTRIBUTION
291
176
9.3
2.1
TOTALS 641 28.7

70
64
58
52
46
40
34
62.6
65.3
68.4
50.1
52.5
54.9
57.4
59.9
44
46.9
41
27
28.2
30.5
32.5
35.2
38.1
28
23.7
24.4
22
Series1
16
10
20
01
20
02
1.5
6.0%
20
03
20
04
20
05
20
06
2.6
7.8%
20
07
20
08
20
09
20
10
20
11
2.8
6.0%
20
12
20
13
20
14
20
15
20
16
2.7
4.5%
20
17
20
18
20
19

No OF CUSTOMERS
(millions)
4.73
4.96
5.2
5.42
5.7
5.9
6.2
6.4
6.7
7.2
7.6

generation capacity installed should meet the expected
7% increase in peak demand and a reserve margin.
Generation capacity (GW)
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
41
59
74
90
2006e 2007e 2008e 2009e 2010e 2011e 2012e 2013e 2014e 2015e 2016e 2017e 2018e 2019e 2020e 2021e 2022e 2023e
SEC Installed & new capacity IWPP Installed capacity IPP Installed capacity SWCC Installed capacity Peak Load total capacity

POWER SECTOR CHALLENGES

High annual growth in demand ( will continue 6-7%).

Extremely sharp daily and yearly load curve (airconditioning).

Replacement of inefficient old generating units.

High capital investment for expansion.

The need for private sector investment .

HOW TO MEET THE CHALLENGES ?

More investment in power generation,T&D .

Encourage the developers for more IPP.

Introduce the smart grid transmission system.

Promote energy conservation and load management.

Invest in renewable energy.

Major Future Generation projects
Year
2010
2011
2012
Project name
Rabigh Steam Expansion
PP-10 (Steam)
Duba PP (IPP)
Al-Shogaig PP
Al-Jubail / Ras Al Zour
Jeddah South
Al-Shogaig PP
A l-Jubail / Ras Al Zour
Al-Shogaig PP
Duba PP
Jeddah South
Capacity (MW)
2,400
990
500
1,200
630
1,200
1,200
1260
800
250
600
Date in Service
2014
2014
2014
2014
2015
2015
2015
2016
2016
2016
2016

Major Future Generation projects
Year Project
2013
2014
Al-Jubail / Ras Al Zour
Al-Ogair / Salwa PP
Jeddah South
Al-Ogair / Salwa PP
Jeddah South
Al-Ogair / Salwa PP
Al-Shogaig PP
Al-Ogair / Salwa PP
2015
Al-Shogaig PP
2016 Al-Jubail / Ras Al Zour
total capacity : 25000 MW
Capacity (MW) Date in Service
630
630
600
1260
600
630
400
1,260
400
1,260 capital Cost : 50 Bln US$
2017
2017
2016
2017
2018
2018
2017
2019
2018
2020


SEC will Continue to encourage private investors to invest in Future Generation projects .

30 – 40 % of Future generation will be IPP(BOO).

SEC partnership will be 10%-50% in the equity.

Long term power purchase agreements (20years)
With reasonable return on investment .

WHY IPP?

Providing Financial Option for Highly Capital
Intensive Generation Projects .

Helping To Re-Direct Available Funds To T&D
(Monopoly Activities)

Reallocation Expenditure From CAPEX To OPEX.

Avoiding Mismatch Between Medium Term
Financing and Long Life PP Projects.

SUCCESSFUL IPP ROJECTS
Two IPP Projects in process:
1. Rabigh Power Plant (closed financialyJuly last yea)
• 1200 MW / HFO
•
IPCOD APRIL 2012
• Investment US$ 2.4 billions
2. Riyadh Power Plant 11 (financial close next month)
•
1800 MW / GAS
• IPCOD APRIL 2013
• INVESTMENT US 1.5 billions.

(INVESTMENTS OF $20B) TO BUILD 12 GW
NAME OF IPP
PROJECT
QURAYYAH
DHEBA
SHUQAIQ
ALOGAIR
JEDDAH
SOUTH
RAS ALZOUR
CAPACITY
(GW)
2
1.6
1.6
2.4
2.4
2.4
PRIVATE
SECTOR
SHARE %
80
80
80
80
80
80
PROJECT
COMPLETION
2014
2015
2015
2016
2017
2019
18

SAUDI NATIONAL GRID by 2018

Future 380KV transmission lines projects
Year
2010
2011
2012
Project
HAIL-ALJOUF-380KV
ASIR_NAJRAN 380KV
GAISOUMAH -ALFADLI 380 KV
BISHA_DAWASIR 380KV
5th 380 KV LINE TO CENTRAK
MADINAH-HAIL
RIYADH-JEDDAH DC line
TABUK-TABARGAL
WEAST _SAUTH 2ND LINE
Length KM
300
400
250
500
400
360
800
600
500
Date in Service
2014
2014
2014
2015
2015
2015
2016
2016
2016

Future 380KV transmission lines projects
Year Project
2013
Tabuk-Tabarjal
Umluj-Wadjh
South-West 2nd line
2014
Jouf-Tabarjal
2015 Al-grayat- Tabarjal
2016 Madinah-Tabuk DCLine total capital cost 24 billion $.
Circuit Length KM
300
250
500
150
200
800


Material and Equipment supply.

As an EPC contractor .

Local manufacturing .

Participate in IPP projects .

Opportunity in consultation and engineering.

Invest in future energy retail.


The growth of electrical energy demand in Saudi
Arabia will continue 6-7%.

Power projects needs 80-90 billion US$ as capital investments for the next 10 years .

Private investors have the opportunity to take 30-
40% of the generation projects as a BOO projects.

US companies have the opportunity to take part both in EPC and IPP.

There are oportunities in Consultation ,
Engineering and Services in power sector.