Doing Business In Saudi Arabia - Bna

Electrical Power Systems (ELP)
Overview Return to top
Saudi Arabia faces a major challenge in meeting the electricity needs of its burgeoning
population over the next 20 years. Consumption is growing at an annual rate of 6
percent requiring an estimated $119 billion in direct capital investment by the year 2020.
The Saudi Government (SAG) seeks private investment to expand generation capacity,
unify its national electricity grid, and switch its power plants from heavy oil to natural gas.
The SAG also needs development in the transmission sector. Brown outs are common
in the Western and Southern Provinces of Saudi Arabia due to insufficient capacity. On
November 2002, the Supreme Economic Council created a regulatory body to set prices
and encourage foreign investment in the sector. Since then, various projects have
already been launched including upgrading existing power plants and building new
facilities.
To encourage private sector investment in power generation, the Saudi government
issued a decree in 1997 redefining power generation as an industrial activity, which
brought power generation under the authority of the foreign investment code allowing
both domestic and foreign investors to freely invest in power generation. In 2003, the
transmission and distribution sectors were opened to foreign and local investors, and the
water and electricity operations were brought under the authority of a single ministry, the
Ministry of Water & Electricity (MOW).
To ensure that the interest of private investors, electricity operators, and consumers are
protected, the Saudi Government established an independent regulatory body, the
Electricity and Co-Generation Regulatory Authority (ECRA). A new Electricity law was
passed in November 2005. While its details have not yet been published, the new law is
expected to reorganize the electricity sector and define the roles of the Ministry of Water
and Electricity, the private sector, and the Saudi Electricity Company (SEC).
Best Prospects/Services Return to top
5/13/2008
Gas turbine units
Steam turbine units
Turbine spare parts & accessories
Power plant design engineering firms
Power plant consulting firms
Products and services related to the power industries:
o Valves,
o Compressors
o Pumps
o Spare parts
o Other related equipment and products.