Font Size

- Aa +

Wed 22 Dec 2010 10:54 AM

Font Size

- Aa +

Saudi Electricity eyes more private participation

State-controlled firm to invest $80bn to boost capacity to at least 70,000 megawatts by 2020

Saudi Electricity eyes more private participation
POWER PLAN: State-controlled SEC plans to invest $80bn to boost capacity to at least 70,000 megawatts by 2020 (Getty Images)

Saudi Electricity

Co (SEC) may involve private firms in building more

power plants to feed big consumers such as state oil giant Saudi

Aramco, SEC's chief executive said on Tuesday.

State-controlled SEC plans to invest $80bn to boost

capacity to at least 70,000 megawatts by 2020 from an installed

capacity of 50,000 MW now to meet domestic demand rising at 8

percent annually.

The private sector would contribute through independent

power producers (IPPs), investing $24bn of the total $80bn, Abdullah al-Hussayen, Saudi minister of water and

power, said in October.

SEC plans to build six IPPs to add 10,000 MW by 2017 with

investments of $12bn, SEC's CEO Ali Saleh Al Barrak told

Reuters on the sidelines of a company event.

"This is what we have today in our plan and we are revising

it every 2 years and probably we may add some more power

plants," Barrak said.

"We have in mind, in discussion now a number of power plants

which will be for new consumers, probably one of them will be in

Rabigh - a new one which is not on the list -- but this is for

specific customers, there are big consumers they need high

capacity 500 MW-600 MW," he said.

Barrak said SEC was looking to serve big consumers which

would need extra capacity by bringing in private investors to

build power plants.

"We invest in it with the private sector and we sell power

to industrial consumers, some of them like PetroRabigh
and Saudi Aramco and others," he said.

Aramco generates 1,063 MW of power and 4.4 million pounds of

steam per hour from four facilities. It has expected its power

demand to grow to 3,600 MW by 2010.

The state oil firm plans to expand the capacity at the four

facilities and add new facilities at two more sites by setting

up a power firm.

SEC has now projects under construction to add 7,000 MW of

capacity in the next two years, Barrak told reporters on the

sidelines of the same event.

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.