The US trade magazine Journal of Commerce’s spinoff publication, ‘Breakbulk’ (concerned with shipping of non-containerized goods) runs a piece on Saudi Arabia’s growing need for electricity. It reports that $100 billion will be invested in both production and distribution of electricity over the next 18 years. The article discusses current energy production and notes that a 20- to 30-Megawatt solar power plant is under discussion.
BANGALORE, INDIA–October 29, 2009–Researched by Industrial Info Resources (Sugar Land, Texas)–State-owned Saudi Electricity Company, based in Riyadh, Saudi Arabia, has announced plans to invest $20 billion to generate more than 10,000 megawatts of power through six independent power producing projects. SEC’s plans also include an addition of 20,000 MW of power through 2018, and the company intends to invest an additional $80 billion to achieve this target. Of the total planned investment of $100 billion, about $46 billion will be used to generate power, $30 billion will be used for transmission, and $20 billion will be used for distribution.
From 2002 to 2008, the growth of the oil sector provided a huge boost to the economy of Saudi Arabia. Today, however, the nation is facing a growing demand for power as it invests in heavy industry and infrastructure projects in an effort to move away from an economy that is largely based on oil revenues.
The IPP projects that are scheduled for completion between 2013 and 2021 include the 1,000-MW plant at Dheba, the 2,000-MW Qurayyah plant, the 1,200-MW Rabigh plant, the 2,520-MW plant at Ras Azzour, the 2,000-MW plant at Riyadh, and the 800-MW plant at Shuqaiq. Contracts for all the projects are expected to be awarded between 2010 and 2017.
According to Amer al-Swaha, head of the IPP program, five consortiums are gearing up to bid for the 2,000-MW Riyadh combined-cycle power project.