Research Reports

Saudi Power Sector - Challenges & Opportunities post Covid-19

May 18 , 2020

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Executive Summary

What is this report about?
Saudi Power Sector report examines the power consumption in the Kingdom, and the country's power generation capacity and transmission and distribution infrastructure. It provides a structural analysis of the power sector in the Kingdom that explains the structural shifts in the power generation sector by type of fuel and type of generations. It elucidates the emerging Business Models for generation, transmission and distribution. The different factors driving the growth of the Kingdom's power sector and the contribution of different user segments contributing to power demand are detailed. The demand and capacity outlook for the three segments of generation, transmission and distribution is given for the next five years considering government policies regarding electricity tariffs. Lastly the investment requirements over the future are discussed. The financing requirements and the challenges confronting the sector are outlined. Also added are comments of implications of Covid-19 impact on renewable energy plans, electricity plans, government support to power projects in the future and other relevant aspects.

Who will benefit and why?
The investors in the Saudi power sector as well as the financiers of investments in the sector will benefit from understanding the structural features of the industry, emerging trends and challenges facing the sector as well as the estimates of demand and capacity requirements over the next few years. The O & M contractors and EPC contractors catering to Saudi power sector will find of value the demand and capacity forecasts in different regions of the Kingdom and the role of private and governments sectors in the running of the operations. The analysis of age profile of the sector capacity by type of generating equipment provided in the report could be of benefit to the potential equipment suppliers to the sector. The contractors implementing projects may find information pertaining to ongoing projects useful in their business planning. Also, external policy analysts, climate control analysts and observers of the sector can find useful insights about relevant aspects of interest about the sector.

How exhaustive is this report?
The report covers demand analysis by the important consumer segments like retail, industrial, commercial and government users. It provides business model insights and analysis by the important fuel types like fuel oil and natural gas, and generation equipment like steam turbines and gas turbines. It deals separately with the three segments of power generation, transmission and distribution. It analyses the plans and potential for renewable power sources like solar and wind energy and comments on the impact of bearish outlook for oil and gas prices post COVID-19 on these plans. It assesses the feasibility of power exports to the neighbouring countries in MENA and the infrastructure availability and needs to achieve these goals. It provides estimates of demand for the future and required levels of investments by generation, transmission and distribution segments for this purpose.


Key Questions Addressed

  • What is the Saudi Power Sector Demand & Supply Outlook?
  • What is the size of Saudi Power Sector Investments over next 5 years?
  • What is the Fuel Mix in Saudi Power Sector?
  • What is the age-wise distribution of Saudi Power Sector Assets?
  • What are the electricity tariffs in Saudi Arabia and outlook going forward?
  • What are Saudi Arabia's long term plans for investments in Power Sector?
  • How can Saudi Power Sector Finance its future Investments?
  • What are the export prospects for Saudi Power Sector?
  • Saudi Power Sector's plans to meet Climate Control Regulations
  • How does Covid-19 impact the Saudi Power Sector?

Table of Contents

  • Executive Summary
  • Saudi Power Sector ‚Äì Generation, Transmission & Distribution Status
  • Structural Analysis of Saudi Arabian Power Sector
  • Power Sector Business Models ‚Äì Generation-Transmission-Retailing
  • Factors Influencing Growth of the Power Sector in Saudi Arabia
  • Expected Growth of the Power Sector in Saudi Arabia
  • Investment Requirement of the Power Sector in Saudi Arabia
  • Key Challenges to the Kingdom's Power Capacity Expansion Drive
  • Conclusion
  • Appendix

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