KSA Energy Strategy KSA Energy Strategy A personal view KSA Energy Strategy Current situation in KSA 1. Current generating power is only marginally above demand 2. In the summer the lunchtime and early evening peaks are covered using diesel generation - $6m of diesel/day ($2bn/yr) 4. If nothing is done in 15 years all current oil production will go to the domestic market and there will be little left for export 5. Electricity generation is set to rise from 14GW to 30GW in the next 15 years 6. Conventional and sustainable energy sources are going to be used to meet this requirement. KSA Energy Strategy Power Usage 1. 80% of current power generation is for buildings 2. Over 50% of the total is used in the domestic sector 3. Over 70% of the properties have minimal or no insulation 4. Expecting to build 1.65m accommodation units in the next “five years” Greater London has around 1.9 million accommodation units KSA Energy Strategy KSA Energy Strategy A personal view KSA Energy Strategy Project Jizan Refinery Power Plant - 2,600 mW ($1.8 bn) 3 new independent power plants ($1bn) Jubail Independent water, steam & power project IPP 500 mW power plant for the steel mill ($500m) Power plant and Desal plant and Yanbu Phase IIl Stakeholder Status Mile stones Aramco FEED Award Q4 13 Aramco/SEC PQ EPC 2013 Marafiq & Sadara Dongbu Corp Design Marafiq Itlalat Al-Ghad Tender Award Q1/13 RAWEC Study ITB 02/13 Salbukh Power Plant 1725 MW ($750m) SEC Study ITB March 2013 Al-Muzahimiyah Power Plant SEC PP13 – 1,800mW Gas Combined Cycle SEC Plan 2015 18/19 AL-Ghad Power and Utility Plant ($300m) Rabigh IWSPP Expansion ($500m) KSA Energy Strategy Stakeholder Status Mile stones Rafia PP2 Gas Turbine Plane SEC Plan 2014 2017 Jezan 2.8680 mW Steam Turbine SEC Plan 2012 Finish 2017 Ras Abu Qamis 3,600 mW Steam Turbine SEC Plan 20114 Finish 2019 Ras Al Khair 3,600 mW Steam Turbine SEC Plan 2014 Finish 2020 Al Rais 1,600 mW Steam Turbine SEC Plan 2015 Finish 2019 Dibba Phase 11,600 mW Steam Turbine SEC Plan 2012 Finish 2017 South Jeddah Phase 2 1,800 mW Steam Turbine SEC Plan 2013 Finish 2019 Dibba 2 1,800mW HFO SEC Plan 2013 Rabigh 2 1,800 mW SEC Plan 21 Oct Project KSA Energy Strategy Strategy for Sustainable Energy February last year the Ministry of Energy was formed with a mandate to legislate on the insulation levels for properties Dr. Saleh Alawaji - Deputy Minister for Electricity • Green building is important as it is now a major mandate of the Government • Enforcement for thermal efficiency is required • Promote air conditioners efficiency Main points: • Enforcement of thermal efficiency • Create a national energy efficiency centre • Revise electricity tariff especially for industry KSA Energy Strategy Project 16 Nuclear power plants ($300bn) Stakeholder Status KACARE Plan Renewable Energy Ph1 & 2 6,650 mW ($12 bn) Fasan Island Solar project $30m Plan SEC 100 mw solar power plant - Makkah 4GW of geothermal and waste-to-energy Dibba 1 600mW Integrated combined cycle using CSP 2MW solar power project Mile stones Plan Q2 /14 Q2/16 Plan KACARE Plan SEC Aramco 17GW by 2032 ITB April Plan KSA Energy Strategy IAEA Milestones Phase 1 Milestone 1 Phase 2 Considerations before a decision to launch a nuclear power programme is taken. Ready to make a knowledgeable commitment to a nuclear programme Milestone 2 Preparatory work for the construction of a nuclear power plant after a policy decision has been taken Ready to invite bids for the first nuclear power plant Phase 3 Milestone 3 Activities to implement the first nuclear power plant Ready to commission and operate first nuclear power plant KSA Energy Strategy • • • • • • • • • • National position Nuclear safety Management Funding and financing Legislative framework Safeguards Regulatory framework Radiation protection Electrical grid Human resource development • • • • • • • • • Stakeholder involvement Site and supporting facilities Environmental protection Emergency planning Security and physical protection Nuclear fuel cycle Radioactive waste Industrial involvement Procurement KSA Energy Strategy KSA Energy Strategy Insulation There are 7.1 million dwellings in the Kingdom Houses and apartments use over 50% of power generation Over 10 years install externally placed insulation - SR 100bn Saving estimated last year when oil was around $80/barrel is in the order of $125 bn The issue is not about the cost of electricity but the amount of oil that could be saved is less was used. KSA Energy Strategy KSA Energy Strategy Types of Renewable Energy 1. 2. 3. 4. 5. Solar Hot water Photovoltaic Concentrated solar power Biomass Geothermal KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy KSA Energy Strategy Water Usage KSA produces only a relatively low percentage of its water from desalination and the exisiting water table has a limited life Over 70% of potable water is used for agriculture - used once and much is lost Recycling of water is currently only being considered for industrial uses Solar desalination is being considered in the GCC Controlled farming is under investigation worldwide KSA Energy Strategy Future Cities Cities and buildings of the future must be efficient in water and energy Public transportation should use energy efficient systems and provide a comprehensive service Food should be produced locally in purpose build facilities Black water should be recycled and the days of drinking bottled water are likely to be limitted. The production, processing, packaging and delivery of foodstuffs uses over 40% of hydrocarbon products The price of the imported fruit in Tamimis does not reflect the actual cost on an environmental basis. KSA Energy Strategy KSA Energy Strategy Controlled Farming KSA Energy Strategy Personal Rapid Transport KSA Energy Strategy Summary Although energy is inexpensive in the Kingdom the actual cost is similar to other countries Use of technology available today can and does save large amounts of energy around the world Future cities will have to move towards energy efficiency, water recycling, new forms of public transportation and food production Controlled farming will allow land to return to nature will help combat global warming Arthur C Clarke - we are moving to a currency based on the kWhr KSA Energy Strategy Thank you