Saudi Electricity Comapny

In: Business and Management

Submitted By shefilabayan
Words 1206
Pages 5
INDEPENDENT POWER PLANTS (IPP) PROGRAM
INVESTMENT OPPORTUNITIES IN IPP PROJECTS

BY DR AMER M. AL-SWAHA HEAD OF IPP PROGRAM JUNE 2007

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CONTENTS

1. INTRODUCTION 2. HISTORICAL SUMMARY OF SEC POWER DEMAND 3. WHY IPP (INDEPENDENT POWER PLANT)? 4. INVESTMENT ENVIRONMENT 5. IPP IMPLEMENTATION 6. INITIAL PROJECTS OF THE IPP PROGRAM 7. DETAILS OF SEC IPPs 8. IPP PROGRAM SCHEDULE 9. PROJECT CONTRACTUAL RELATIONSHIPS 10. DEVELOPMENT STAGES 11. OPPORTUNITIES 12. CONCLUSION

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INTRODUCTION

SAUDI ELECTRICITY COMPANY WAS ESTABLISHED IN 2000, BY MERGING ALL SAUDI REGIONAL ELECTRICITY COMPANIES TOGETHER WITH PROJECTS OF THE ELECTRICITY CORPORATION INTO A SINGLE ENTITY THE SAUDI GOVERNMENT OWNS 81% OF SEC SHARES IN 2006 , SEC POWER GENERATION WAS 31 GW COMPARED TO 1.4 GW IN 1976. NUMBER OF PRESENT POWER PLANTS IS 70 , IN 2006 SEC HAS PURCHASED 4 GW FROM SWCC AND LARGE CUSTOMERS, IN 2006 , THIS WILL RAISE TO 21 GW DUE TO FUTURE IPP/IWPP PROJECTS CURRENT SEC POWER TRANSMISSION INCLUDES 132/230/380 KV VOLTAGES WITH 380 KV INTERCONNECTIONS BETWEEN CENTRAL & EASTERN REGIONS AND FUTURE LINK TO GCC NETWORKS (UNDER CONSTRUCTION) ESTIMATED CAPITAL EXPENDITURE OF SEC FOR THE NEXT 10 YEARS IS SR 190 BILLION
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HISTORICAL SUMMARY OF SEC POWER DEMAND
THE HIGH GROWTH IN POPULATION AND ELECTRICITY POWER DEMANDS IS SHOWN BELOW FOR: YEAR 1976 POPULATION – 7.7 MILLION POWER DEMAND – 0.9 GW YEAR 2006 POPULATION – 23.7 MILLION POWER DEMAND – 29.9 GW YEAR 2024 POPULATION – 50 MILLION POWER DEMAND – 70 GW

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WHY IPP?
MASSIVE INVESTMENTS TO MEET HIGH GROWTH RATE IN BOTH RESIDENTIAL AND INDUSTRIAL DEMANDS ATTRACT PRIVATE SECTOR INVESTMENTS (FOREIGN & LOCAL) IN POWER INDUSTRY EXPAND CITIZENS OWNERSHIP THROUGH FUTURE INITIAL PUBLIC OFFERINGS INCREASE SAUDI EMPLOYMENT OPPORTUNITIES PROVIDE A FINANCIAL OPTION TO RE-DIRECT AVAILABLE SEC FUNDS TO TRANSMISSION AND DISTRIBUTION…...

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