Saudi says must invest $88bn in power over 10 years

  • Share via facebook
  • Tweet this
  • Bookmark and Share
POWER NEEDS: Saudi Arabia needs to invest SR330bn ($88bn) over the next 10 years as demand for electricity continues to grow 7-8 percent annually (Khatib/AFP/Getty Images)

POWER NEEDS: Saudi Arabia needs to invest SR330bn ($88bn) over the next 10 years as demand for electricity continues to grow 7-8 percent annually (Khatib/AFP/Getty Images)

Saudi Arabia needs to invest SR330bn ($88bn) over the next 10 years as demand for electricity continues to grow 7-8 percent annually, the kingdom's water and electricity minister said.

Abdullah Al Husayen told an industry conference on Saturday that the water and power sector would need investments of SR500bn in the next ten years, and that demand for water was growing by more than 7 percent annually.

"It is expected that the maximum power load will reach 75,000 megawatts in the next 10 years which means the need to invest around 330 billion riyals to boost generation capacity and transmission and distribution networks," Husayen said.

The figure for power investments was higher than an earlier SR300bn given by officials as needed to boost capacity to 80 gigawatts from 50 gigawatts, but appears to also include transmission and distribution costs.

"The private sector is expected to contribute roughly 30 percent of it or the equivalence of SR100bn," Husayen said.

"Its an approximation... that the demand for power is expected to continue to be growing 7-8 percent during the next ten years," Husayen told reporters.

Although sitting on the world's biggest oil and fifth gas reserves, Saudi Arabia is struggling to keep pace with rapidly rising power demand, as petrodollars have fuelled a region-wide economic boom as well as rapid population growth.

Asked about solar power, Husayen said: "It may not be [of use] in the short term... but maybe nuclear energy will be more than solar energy in the future."

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Back in business

Back in business

Iran’s tankers are back on the oceans as sanctions on the Islamic...

A new future for Saudi Arabia?

A new future for Saudi Arabia?

The vast Wadd Al Shimal phosphate mine in the north of Saudi...

Most Discussed
  • 16
    Baby NOT on board?

    The people commenting here were all 20 years old when they were born, never cried, never screamed and never ran etc etc.
    more

    Thursday, 21 August 2014 8:30 AM - Amer
  • 7
    Belgium diplomat arrested for pulling veil from Qatari princess

    If its illegal to dress in a certain way why didnt the police do something about it.

    Whereever the Europeans go, they demand that society conforms... more

    Thursday, 21 August 2014 8:37 PM - Ghazi
  • 7
    CEO of Just Falafel to step down

    Just Falafel was a disaster waiting to happen. The food isn't even that good and the focus wasn't on building the brand and operations. Instead they focused... more

    Thursday, 21 August 2014 8:37 PM - milad
  • 23
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 17
    UK looks to close tax loophole on expat landlords

    UK taxes too much and too complicated and time taking and confusing and continuous. Returns, lawyers, HMRC, taxes too much for too little. Not worth the... more

    Sunday, 17 August 2014 12:40 PM - AbdolRahman
  • 16
    Baby NOT on board?

    The people commenting here were all 20 years old when they were born, never cried, never screamed and never ran etc etc.
    more

    Thursday, 21 August 2014 8:30 AM - Amer