Sector Report. Power. Saudi Arabia

Transcription

1 Sector Report Power Saudi Arabia Produced by: Sharif Moussa, Senior Trade & Investment Officer, British Trade Office Last revised March 2010 Whereas every effort has been made to ensure that the information given herein is accurate, UK Trade & Investment and its sponsoring Departments, the Department of Business, Enterprise & Regulatory Reform and the Foreign & Commonwealth Office, accept no responsibility for any errors, omissions or misleading statements in that information and no warranty is given nor responsibility accepted as to the standing of any firm, company or individual mentioned. Published March 2010 by UK Trade & Investment. Crown Copyright

2 Table of Contents OVERVIEW 3 OPPORTUNITIES 4 CHARACTERISTICS OF MARKET 7 KEY METHODS OF DOING BUSINESS 12 MORE DETAILED SECTOR REPORTS 13 PUBLICATIONS 14 EVENTS 14 CONTACT LISTS 15 OTHER USEFUL WEBSITES: 17 TABLES 17 Page 2 of 18

3 OVERVIEW In spite of the global financial crisis and recession, Saudi Arabia is still considered one of the largest potential markets in the Middle East. Over the past year, the Saudi economy has witnessed a period of relatively high growth and economic progress. This has been based on a strong oil sector, and record oil revenues, allowing the Kingdom to increase public spending on infrastructure and welfare to match the increasing needs of the Saudi population. In turn the non-oil private sector is feeding off this upturn in public spending. The Government budget for 2010 was signed off with increased spending compared with the 2009 budget. Saudi economy is poised to grow by three to four percent in General highlights Saudi Arabia holds 25% of the world s proven oil reserves. Saudi Aramco, the world s largest fully integrated oil company, has now embarked on a massive US$ 50 billion expansion of its capabilities over the next 5 years, in order to meet the global increase in oil demand. The first target is to increase production capacity from 10 million bpd to 12.5 million bpd over by This increase in production is being coupled with an increase in exploration. Saudi Arabia has only fully explored 25% of its potential oil producing area. The aim of the latest round of exploration is, by 2010, to increase the proven oil reserves by a further 200 billion barrels from 260 billion barrels to 460 billion barrels. In regard to power, Saudi Arabia has one of the highest per capita electricity consumption rates in the world (average 5000 kwh/month). The country needs to expand its power capacity and network to support the Government s ambitious industrialisation plans. Since 1990, total electricity capacity has been increasing at a slower rate than consumption and peak load, mainly because of the need to maintain a reserve capacity of 17% during peak periods. The Saudi population of about 24 million is growing at a rate of 3.4 percent. The number of subscribers to electricity services has increased from 3.5 million in 2000 to over 5.42 million at the end of In addition to the growing population, Saudi Arabia needs to expand its power capacity and network to support the Kingdom s ambitious industrialisation plan. The Ministry of Water and Electricity s 25 year electrification plan calls for US $ 117 billion in capital investment to increase total capacity from about 17,000 Mw per year at the beginning of the plan to 67,000 Mw by the year Additionally, the power network has not developed evenly throughout the Kingdom, and there are still some rural areas which are not connected to the power network. Many power projects have been launched to achieve the desired expansion, including the upgrading of existing power plants and the building of new power facilities. This tremendous growth potential makes the country one of the world s most attractive markets for power generation as well as for transmission and distribution equipment. Page 3 of 18

4 Besides power generation, Saudi Arabia requires additional investment in power transmission. Currently only two of the country s four power regions are connected. Creating a unified grid could require over 20,000 miles of additional power transmission lines. Also on the transmission side, Saudi Arabia and the other five GCC states began to link the electrical power networks; The first phase of the $7 billion power grid, which links Saudi Arabia to Bahrain, Kuwait and Qatar through 800 kilometers of transmission lines was commissioned in 2008, and the first phase was completed at a cost of $1.095 billion. In the second phase, the United Arab Emirates and Oman will hook up to the grid next year. The resulting two mega grids will be joined in the final phase, slated for operation in The power grid is expected to boost the electricity network and reduce the cost of power generation in GCC states drastically. Within GCC, Saudi Arabia accounts for about 48% of the total power generation in the region. Saudi Arabia is embarking on a large number of new mega projects that the four major economic cities in Rabigh, Hail, Madinah and Jezan, herald a new era of regional development at which more electric power is required. Also, the Kingdom s mining sector gears up for major investment as nearly $12 billion will be invested in projects in the next four to five years. OPPORTUNITIES General The Saudi import market for power generation equipment is valued at US$ 1 billion a year, and the expected annual growth rate 7 percent. Saudi power companies periodically issue tenders for supplying their power plants with electrical and mechanical parts. Equipment tenders have recently included gas turbines, various filters for gas turbines, blades and accessories for gas turbines heat exchangers, boilers and alternators. Private sector finance, operation and management of the Saudi utilities are essential if the Kingdom is to meet rising demand for electricity and water. SEC & SWCC said that close to $60 billion worth of investment was needed from both private and public sectors if shortage were to be avoided. The giant Ras Tanura refinery upgrade and integrated petrochemical complex will contain a power element. This Aramco project will have a WSPP (Water, Steam & Power Project). Opportunities also exist for British power-equipment manufacturers who are seeking joint venture arrangements with Saudi partners. The major local powerequipment manufacturers in the Kingdom are either licensees of European and American manufacturers, or joint venture partners of these international manufacturers. Various components, including wiring devices, switches and insulators are imported for assembling in Saudi Arabia. Opportunities in Power Generation: There are unprecedented opportunities in the power generation field. Following is a summary of the proposed investment opportunities (table 7): List of power generation products and materials required by the Saudi market: Page 4 of 18

5 Gas & Steam Turbines Boilers and Heat Exchangers Heat Recovery systems Speciality Valves Electrical Heat Tracing Engine Generator Sets Low Speed to High speed Air Compressors DCS System Transmitters and Transducers Gauges (Magnetic, acoustic type for Level Flow meters for Fluid or Gas Treatment Plants (Sewage, oil and water) Incinerators Frequency Controllers Industrial API Pump Skids, and Motors Fuel Oil Handling Facilities MV and HV Capacitor Banks Opportunities in Power Transmission: IT - related technology, smart meters and sensors Sequence of Event Recorders Systems Vocational trainers and training programmes for technicians in transmission and distribution of power. SEC has a large modern training facility in Eastern Province, and in some special cases is prepared to send students overseas. Opportunities in Power Distribution: Best opportunities for UK companies are in the following areas: To go into joint venture or take advantage of the foreign investment scheme and manufacture products and accessories locally. Supply of 250,000 digital meters (smart meters) per annum, required for new connections by SEC up to year Additional 4.5 million meters are required in the future when replacing the existing revolving meters. Automation Technology Systems. Opportunities in other products and materials that could be used in both generation and transmission are: Power Transformers for various high voltage levels (132kV up to 400KV) Distribution Transformers for various Medium voltage levels (4.16kV up to 33KV) Relay and Control Panels Annunciation System Fault Recorders High Voltage XLPE or oil Filed Cables, Cable Sealing Ends and Accessories Batteries, UPS and Charger Systems HV Instrument Transformers such as CTs, PTs and CVT High Voltage Circuit Breakers and Disconnect Isolators Surge Arrestors HV Connectors & Insulators Meters (Power or Energy meters for Electrical, Flow meters for Fluid or Gas) MV and HV Capacitor Banks Fuses Emergency Lighting Systems Page 5 of 18

6 Inspection Equipment Testing Equipment Analyzing Equipment Opportunities of services required by the Saudi market for most of the following items: Supervision of Installation Testing and Commissioning Technical Advisory or Consultancy for Project Development Investors and Developers in the IPP and IWPP projects Design and Engineering Works for Large Scale Projects Technical Training for Engineering, Installation, Testing, Commissioning, Operation and Maintenance After Sales Services Inspection and analyzing Opportunities at Ma aden: The co-generation plant planned by Maaden will have power capacity of 160 MW and 10,000 cubic metres per day. Ma aden is also planning a separate, larger 1,800 MW co-generation facility for its aluminium refinery & smelter complex, also located in Ras Azzour. The Saudi Arabian authorities decided to implement the Ras al-zour project on an engineering, procurement and development (EPC) basis under SWCC s auspices rather than as an independent water and power project (IWPP) under the Water and Electricity Company umbrella. EPC contractors have been asked to submit bids on the project, which is located 75km North East of Jubail, the first commercial operation is planned for 1 December 2012, with total operation by 31 December Major Projects: - The Saudi Electricity Company (SEC) is proposing to expand two of its power generating sites, adding 2000 MW to its generating capacity. The award of the fist contract for the fifth stage expansion of the Rabigh power plant will add 1000 MW of crude oil fired capacity at the site. The National Contracting Co submitted the lowest bid of $802 million. Meanwhile, three contractors are believed to be preparing bids to convert its yet-to-be completed Qurayyah Power Plant to combined cycle. A contract for the first 1800MW open-cycle stage of this plant was awarded to Bemco in 2008 in a deal worth $570 million. The second stage will add a further 1000MW - GE Energy has signed contracts totalling more than $500 million to supply gas turbines and generators for power plant projects owned by SEC. - The upgrade of Central Province PP8 plant from 1850 MW to 2330 MW will include performance monitoring solutions from Invensys Process Systems. The equipment will control the four new GE gas turbines that will make up the extension. PP8 is one of two plants that supply Riyadh, the capital. - KEC International has won a turnkey order worth close to $121 million from SEC for the construction of a 380kV overhead transmission line, which will have a total length of 268 km. - SEC signed a SR444 million deal with Alfanar Construction, an integral part of Alfanar Group, for a new 380kV substation to distribute electricity to new facilities located in Makkah in the Western Province. - Shoaiba III IWPP Status: On 1 November 2008, commissioning started for the desalination plant. The initial commercial operation (including first Power Page 6 of 18

7 Unit and associated 4 Desalination Units) is expected in February The overall completion was done in August In December 2005, the EPC contract was awarded to the JV of Siemens and Doosan Heavy Industries. In June 2005, the BOO contract was awarded to the consortium of Acwapower, Malakoff Berhad, Khazanah Nasional and Tenaga Nasional Berhad. - Shuqaiq II IWPP Status: Execution of the project is in progress. The first power generation unit is expected to be operational by the end of April The project is expected to be completed in late Marafiq Jubail IWPP: The Jubail IWPP of SR 12.8 billion is the world s largest combined-cycle power and water plant. In April 2009, the project was completed. It was previously expected to be completed in March The Marafiq Jubail IWPP has a capacity of 2,750 MW combined cycle power station and a large water desalination facility of 800,000 cubic metres per day. - Marafiq Yanbu IWPP: Marafiq Yanbu IWPP would produce 1700 MW of electricity and 150,000 cubic meter potable water per day. Feasibility study of the Yanbu IWPP was completed early 2008 and bidding process was completed in Yanbu IWPP is expected to be commissioned in mid UKTI publishes international business opportunities gathered by our network of British Embassies, High Commissions and Consulates worldwide. These opportunities appear in the Opportunities portlet on the relevant sector and country pages on the UKTI website. By setting up a profile you can be alerted by when relevant new opportunities are published. New or updated alert profiles can be set in My Account on the website. CHARACTERISTICS OF MARKET 1. Forecasts of the Saudi Arabian Eighth Development Plan The following main objectives are likely to be achieved during the Eighth Plan period: a. Achieving full electricity service coverage in the Kingdom by providing service to 1,126 villages and hamlets and adding 1,163,200 new customers during the Eighth Plan period. b. Increasing the power generation capacity by 10,996 MW in addition to 1,330 MW from desalination plants. Private investors will be allowed to provide the additional generation capacity particularly establishment of new power generation plants on a "Build-Operate-Own" (BOO) basis. c. Linking the electricity network of the Central region with the network of the Western region and linking the latter with the Southern region. d. Continuing with the process of restructuring and privatisation and creating an independent company during the Plan period to own and operate the national transmission network. e. Linking the electricity networks of the Kingdom and the GCC countries to support exchange of electricity and load sharing. f. Studying the feasibility of exporting electricity by the Kingdom on a commercial basis. 2. Future Vision The program of developing the electricity sector towards the planned model is comprised of three stages: Page 7 of 18

8 a. Transitional Stage It will take two years to complete this stage which includes finalisation of the regulatory framework, identifying licensing methods and procedures, setting service standards, studying the feasibility of separating transmission facilities from generation facilities. Also by transforming the former into an autonomous company, operating distribution and generation facilities on a commercial basis and establishing a framework that allows the involvement of the private sector in the power generation projects as independent producers of both water and power. b. Intermediate Stage This stage will take 3-5 years during which the separations of transmission facilities have been completed. The stage encompasses distribution of the generation activities of the Saudi Electricity Company among a number of independent companies, thereby enhancing competition and facilitating entry of private companies into the field of generation. The stage also covers provision of an operator for the transmission system that will also be the sole buyer of the electricity power produced and transmitted by the main network. c. Final Stage (Competition) This stage will be reached after completion of the two previous stages (more than five years). The generation, transmission and distribution companies of the electricity sector are expected to be in a normal operational situation during this stage. Furthermore, electricity prices are expected to be set on an economic basis to cover the whole cost of service and ensure a reasonable return on investment. Moreover, the industrial and other major customers will have the opportunity to choose the service supplier in the context of an advanced (competitive) market environment of wholesale operations based on transparent rules and measures. 3. Development Strategy a. Objectives The objectives of the electricity sector development are as follows: 1. Providing the electricity service at an adequate technical level to all population settlements and economic facilities. 2. Providing electricity service at minimum economic, social and environmental costs. 3. Continuing to encourage the conservation of energy and rationalisation of electricity consumption. b. Targets Full electricity service coverage is expected to be achieved during the Eighth Development Plan period and about 1.16 million additional customers are expected to be served. Moreover, it is expected that the Kingdom's national network will be completed and linked with the Gulf and Arab networks as a regional grid. 4. Saudi Electricity Company (SEC): The Saudi Electricity Company (SEC) is a joint stock company, incorporated by Royal Decree in April 2000 and merging all the power utilities and the projects of the Electricity Corporation into one entity. SEC objectives include generation, transmission and distribution of power; and purchase, sale and provision of power services in the Kingdom. SEC also imports and exports power across borders, and carry out and support research for service enhancement, power conservation, Page 8 of 18

9 performance upgrade, environment protection and cost-reduction. The Saudi Government owns 74.31% of the total shares, private sector 18.76% and Saudi Aramco 6.93%. The table below shades some lights on the major figures on SEC. Description Change Power Generation Capacities (MW) 25,790 39,242 52% Transmission Networks Length (ckm) 29,631 39,793 34% Distribution Networks Length and Electric Power Connections to Customers (ckm) 226, ,420 52% Number of Customers 3,622,391 5,420,810 50% A. Generation Most of the steam and gas turbines presently operating in the Kingdom come from Mitsubishi, Siemens, GE and Alstom. GE is market leader on gas turbines and Mitsubishi on steam. UK companies still supply parts and provide repair/maintenance and consulting services. Desalination makes a significant contribution to Saudi Arabia s overall power generation. The Saline Water Conversion Corporation (SWCC) is a Saudi government corporation responsible for desalinating seawater, in order to augment the supply of potable water. SWCC is also the second largest electric power producer in the Kingdom and they operate around 27 desalination plants on the Red Sea and the Arabian Gulf, nine of which are dual system, generating 8% of the total Capacity. (See table 1) According to the government s 25-year electricity plan, the growth in electricity demand between 1995 and 2020 will average 4.5 percent. Usage/demand for power is also high due to the Kingdom s low tariff rates. Generation is well on the way to privatisation. Permits for power generation in the private sector have already been issued to various companies. Marafiq is planning to build its first Independent Water & Power Projects (IWPP) at Al Jubail site. Saudi Aramco already built four Independent Power Projects (IPPs) with a total output capacity of 800 MW (main projects executed by the UK based International Power). Other private petrochemical and mining companies also have plans to build IPPs. B. Transmission There was a plan to privatise the SEC transmission network last year, but the execution was delayed further. The growth of daily peak load of national network this year was 4.4% (the highest power transmission load ever recorded was 31,240 MW in summer 2007). SEC s future projection is to add 2000 MW annually for the coming 20 years at an average cost of $100 billion (average EPC cost is $500 million per 1 GW). The Transmission Network Lengths (110KV 380KV) increased Page 9 of 18

10 from 36,652 circuit KM in 2006 to 37,891 circuit KM in 2007 (average growth 3.6%). There is no single interconnected power system within the country, except the two large systems in Eastern and Central Provinces, which are interconnected at 380 KV. The remaining regions have their own local transmission networks. However, operation of small stand-alone electric networks is still a practice in many parts of the country. The power transmission voltage is at 380, 230, 132, 115 and 110 kv. C. Distribution & Customer Services UK products relating to power distribution used to dominate the market but have faced growing competition over the last ten years. SEC was using British standards but is now adopting international standards. Most of the major distribution materials and accessories such as switchgears, circuit breakers and transformers are now manufactured in Saudi Arabia. High voltage distribution networks operate at 69, 34.5, 33, and 13.8 kv. Electricity is delivered to household and small consumers at 127, 220 and 380 Volts. The following tables show the average growth rates in various segments within the distribution and customer service: D. Electricity efficiency and saving efforts The Ministry of Water and Electricity has adopted a strategy to cope with the increase in power demand and to assure reliable electricity supply. They are aiming at the expansion of generation capacity and the reduction of peak demand. The strategy includes setting up limits on maximum power delivered to large electricity consumers, demand-side management actions and the rationalisation of the use of electricity. Energy Conservation and Load Management Committee had been established at the Ministry of Water and Electricity. The Committee tasks include: - Create awareness on energy conservation among the public - Prompt energy conservation and load management - Advice the Government on action required - Co-ordinate implementation of projects in energy conservation and management 5. Water & Electricity Company (WEC): The Water & Electricity Company (WEC) was established in July 2003 as a limited liability company with a capital of $8 million. It was the first practical partnership between a government body Saline Water Conversion Corporation (SWCC) and a quasi-government company Saudi Electricity Company (SEC). The company board is comprised of six directors; three representatives from each side. The main objectives of WEC are the sale and purchase of water and electricity and all required ancillary activities. Under the Power & Water Purchase Agreement (PWPA) WEC will buy the Project s water and electricity, and in turn sell this water and electricity on to SWCC and SEC respectively. Three IWPPs (one on the East Coast and two on the West Coast) under the responsibility of WEC are underway. Page 10 of 18

11 The first IWPP Power and water purchase agreement was signed between WEC and a Saudi-Malaysian alliance to set up a power and water plant. The Shoaiba plant on the Red Sea will cost approximately $2.4 billion, which will produce 900 MW of electricity and 880,000 Cubic meter of desalinated water per day. The project is backed by Dutch bank ABN AMRO, Arab Bank, Export-Import Bank of Korea, Riyadh Bank and Saudi Hollandi Bank. WEC already announced a request for Expressions of Interest for the second IWPP Shuqaiq (phase 2) on the Red Sea, which is expected to produce 700 MW of electricity and 23.3 million gallons of water per day. The third IWPP mega project is Ras Azzour with a capacity of 2,500 MW and 176 million gallons of water. WEC have announced the names of the pre-qualified companies / consortia with deadlines for submission of statement and notification of qualifications. 6. The Power & Water Utility Company for Jubail & Yanbu (Marafiq): Marafiq operations began in January 2003 as a joint stock company established to provide utility services to the industrial and non-industrial customers in the Jubail and Yanbu Industrial cities. Marafiq was established by the Council of Ministers in line with the directives of a Royal Decree in order to assist in the expansion of the private sector s participation in the power and water sectors. All of the electric and water transmission, distribution and supply facilities in Jubail and Yanbu, which have been operating for 20 years under the Royal Commission, now function independently under the direction of Marafiq. Marafiq is planning to construct the world s largest Independent Water & Power Plant (IWPP) in Jubail. The IWPP project has secured a syndicated loan of $3.4 billion from international, regional and Saudi banks. The financial arrangement combined both conventional and Islamic financing and is the largest ever in the power industry in Saudi Arabia. The deal has been completed in collaboration with the developer consortium consisting of Suez Energy International, Gulf Investment Corporation and the Arabian Company for Water and Power Projects. The scope of work consists of the construction of new IWPP in Jubail. Site preparation has already started and project is expected to go on stream in March The output capacity of desalinated water will be 800,000 cubic meters per day, with the output capacity of power is 2,500 MW). The major items that will be installed: Gas and Steam Turbines, Generators, Electrical Systems, Control Systems and Instrumentation Systems. 7. GCC Interconnection Authority (GCCIA): This is a joint stock company comprising of the Governments of the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait. The head office of the Authority is located in Al Khobar, in the Eastern Province of Saudi Arabia. The main objective of the Authority is to link the power networks in the member states by providing the necessary investment for the exchange of power supply to face power generation failures in emergency situations. Another objective of the Authority is to reduce the electrical generation reserve and improve the economic efficiency of the power industries in the member states. Page 11 of 18

12 The project consists of three phases. Phase I (North Grid) will link Kuwait, Saudi Arabia, Bahrain and Qatar; Phase II (South Grid) will link UAE and Oman; and phase III will connect phase I and phase II. The grid is intended to cut the cost of electricity for all six Gulf Co-operation Country States, and to achieve a more efficient use of the surplus power. The first phase of the $1.2 billion GCC grid project has been completed and the inauguration will take place during December 2009 at the 30 th GCC summit in Kuwait and it will be a key part of the region s energy infrastructure. The project was awarded into 14 contracts as follows: 1. Three contracts with ABB Contracting Co. of KSA, (lots: A2, A4 & A5) 2. Three contracts with ABB Switzerland Ltd, (lots: A1, A6 & A7) 3. One contract with Areva for the HVDC Back to Back Converter Station 4. One contract with Areva for the Control Centre 5. Two contracts with National Contracting Co. of KSA, (lots: B1 & B4) 6. Two contracts with Meedco of KSA, (lots: B2 & B3) 7. One contract with Prysmian/Nexans for Land & Submarine Cables One contract with SNC-Lavalin for Consultancy & Supervision The project is in progress towards completing the GCC grid has been impressive and more than 65% of the construction in 1.2 billion first phase was completed, which will interconnect Kuwait, Saudi Arabia, Bahrain and Qatar before the end of Electricity & Co-Generation Regulatory Authority (ECRA): ECRA is driving the privatisation of the power system in the Kingdom and their role is to regulate the market and set tariffs. The plan is to go for total privatisation and open the market to establish a culture of competition. Presently SEC has a monopoly over generation, transmission and distribution. These activities are to be brought under the supervision of ECRA. A decision has been taken by the SEC Board to separate transmission as an independent entity, which will procure electricity from a number of generators and transmit it to distributors at a certain tariff. The transmission entity would be a monopoly regulated by ECRA. Moves are underway to privatise SWCC. ECRA signed contracts with London based CMS UK Ltd and ESP from Ireland for a code review. ECRA is now studying a system to identify the Kingdom s power and water needs up-to KEY METHODS OF DOING BUSINESS - Trade Regulations: There are no significant trade regulations or other market impediments to the import of electrical & power equipment into Saudi Arabia. Saudi Arabia is the largest market for electric & power equipment in the Arabian Gulf. - Standards: Suppliers of electric & power equipment need to conform with the local electric current set at 127 volts, 60 Hertz. Saudi Arabia's residential electric power system of 127 volts, 60 Hertz is unique and has caused export problems for many products in the past. However, the Saudi Arabian Standards Organisation (SASO) will accept electrical products as low as 115 volts, 60 Hertz. SASO has decided to adopt ISO 9000 as the approved standards for Page 12 of 18

13 Saudi Arabia and to act as an accreditation body through the Quality Assurance Department. - Sales of electric and power equipment and services to government should mainly be done through local dealers/agents. Local dealers should be financially sound and have a qualified and well-trained staff knowledgeable of the promotion, installation and sale of such material/equipment. A local agent must be able to provide technical assistance and local servicing. As a general rule, under Saudi law, only Saudi companies are allowed to submit bids for government contracts, and the sale of such equipment and related products should be done through local dealers/agents. Most Saudi imports are contracted on an irrevocable letter of credit basis, although other financial arrangements are sometimes used. Payment terms vary from 60 days, 90 days to 120 days. Companies chosen to implement power and electrical projects are allowed to directly import equipment and any related materials. Other background information on doing business in Saudi Arabia can be found on UKTI s website. Simply go to the Saudi Arabia country page where you will find information on: Economic background and geography Customs & regulations Selling & communications Contacts & setting up Visiting and social hints and tips MORE DETAILED SECTOR REPORTS Research is critical when considering new markets. UKTI provides market research services which can help UK companies doing business overseas including: Overseas Market Introduction Service (OMIS). Bespoke research into potential markets, contacts and support during your visits overseas. Export Marketing Research Scheme. Advice on market research and help to contact subsidised market research administered by the British Chambers of Commerce on behalf of UKTI. Contact your local International Trade Advisor if you are interested in accessing these services, or for general advice in developing your export strategy. When considering doing business in Saudi Arabia it is essential to obtain legal, financial and taxation advice. A useful contact list of lawyers and other relevant professional bodies as well as further information on the power sector in Saudi Arabia is available from: Sharif Moussa Senior Trade & Investment Officer British Trade Office PO Box 3672 Al Khobar Tel: +966 (0) ext Fax: +966 (0) sharif.moussa@fco.gov.uk Web: Page 13 of 18

14 PUBLICATIONS Middle East Economic Digest (MEED) MEED Head Office Bowling Green Lane, London EC1R ODA, UK Tel: +44 (0) Fax: +44 (0) , or Web: Power (An Overseas Trade Supplement) UK Trade & Investment Kingsgate House, Victoria Street London, SW1E 6SW, UK Tel: +44 (0) Fax: +44 (0) Web: Gulf Industry AL Hilal Publishing & Marketing Group Building 149, Exhibition Ave, Manama 320 PO Box 224 Manama, Bahrain Tel: Fax: Web: Arab British Business Arab-British Chamber of Commerce 1 Jermyn Street London SW1Y 4UH, UK Tel: +44 (0) Fax: +44 (0) d.morgan@abcc.org.uk Web: Saudi Commerce & Economic Review Asharqia Chamber PO Box 719 Dammam 31421, Saudi Arabia Tel: +966 (0) Fax: +966 (0) Saudicommerce@chamber.org.sa Web: EVENTS Middle East Electricity Exhibition & Conference - Dubai Date: 9-11 February Page 14 of 18

15 Dubai, UAE One of the long established events in the region (early 1970 s), which covers every category in the electric and power industry from Adapters to Wiring & Accessories. BEAMA will organise a pavilion at this important exhibition with a possibility for the UK Embassy to organise networking event. Power-Gen Middle East Date: 4-6 October 2010 Doha, Qatar Power-Gen Middle East is in its seventh year. It is established as a region s power industry event in the Gulf, which attract local and international power executives from Saudi Arabia and other Gulf States. It will be held in Qatar in 2010 for the first time. UKTI will visit the exhibition and offer services to UK exhibiting companies. For additional information or participation in the above events, please contact Karen Smith, Power Sector, SG, UKTI London, or Sharif Moussa, Senior Trade & Investment Officer, British Trade Office Al Khobar. (See contact information below) UK Trade & Investment s Tradeshow Access Programme (TAP) can help eligible UK businesses take part in overseas exhibitions. Attendance at TAP events offers significant benefits: possibilities for business opportunities both at the show and in the future a chance to assess new markets and develop useful contacts grants are available if you meet the criteria UKTI staff overseas will be available to assist delegates Find out if you are eligible to apply to attend this event, and more about the support UKTI can offer, on the UKTI Market Entry web page. Details of TAP events can be found in the Events portlet on the Saudi Arabia page. Other Market Visit Support may be available via your local International Trade Advisor. CONTACT LISTS Saudi Electricity Company PO Box Riyadh 11416, Saudi Arabia Tel: Fax: Web: Water & Electricity Company (WEC) PO Box 5968 Riyadh 11432, Saudi Arabia Tel: Fax: info@wec.com.sa Web: Power & Water Utility Co for Jubail & Yanbu (Marafiq) PO Box Jubail 31961, Saudi Arabia Page 15 of 18

16 Tel: Fax: , or Web: GCC Interconnection Authority (GCCIA) PO Box 3894 Dammam 31481, Saudi Arabia Tel: Fax: Web: Electricity & Co-Generation Regulatory Authority (ECRA) PO Box 4540 Riyadh 11412, Saudi Arabia Tel: Fax: Web: under construction Saline Water Conversion Corporation (SWCC) PO Box 5968 Riyadh 11432, Saudi Arabia Tel: Fax: Web: Saudi Arabian Oil Company (Saudi Aramco) PO Box 919 Dhahran 31311, Saudi Arabia Tel: Fax: Web: UK Trade & Investment Contacts: 1- In the UK: Karen Smith Manager, Power Team UK Trade & Investment Victoria Street London SW1E 6SW Tel: +44 (0) Fax: +44 (0) karen.smith@ukti.gsi.gov.uk 2- In Saudi Arabia: Sharif Moussa Senior Trade & Investment Officer British Trade Office PO Box 3672 Al Khobar 31952, Saudi Arabia Tel: Ext Page 16 of 18

17 Fax: sharif.moussa@fco.gov.uk OTHER USEFUL WEBSITES: UK Trade & Investment (UKTI): British Embassy Riyadh, Saudi Arabia: British Electro-technical & Allied Manufacturers Association (Beama): British Hydropower Association (BHA): British Wind Energy Association (BWEA): UK Combined Heat & Power Association (CHPA): Energy Industries Council (EIC): British Expertise (BCCB): TABLES Table 1: Actual Generation Capacity by Unit Type (MW) Generation Type Steam Turbine 10,165 10,293 10,293 11,472 12,651 12,795 Gas Turbine 13,684 14,013 15,273 15,843 16,984 18,915 Combined Cycle 2,484 2,445 2,444 2,385 2,385 2,371 Diesel , Total Actual SEC Capacity 27,018 27,711 29,051 30,308 32,603 34,470 From large customers at ,338 1,597 1,840 peak load time Desalination plants at Peak 2,866 2,445 2,539 2,819 2,395 2,444 load time Rental diesel units N/A N/A Total available capacity 30,091 30,526 32,712 34,823 36,949 39,242 Table 2: Produced Energy by Unit Type (GWh) Gen. Type Steam Turbine 60,644 67,275 71,416 71,131 78,026 81,770 Gas Turbine 50,733 51,268 60,121 67,543 70,217 79,130 Combines Cycle 14,570 14,872 15,725 14,762 14,727 15,131 Diesel 2,424 2,397 1,798 1, Total available energy 128, , , , , ,566 Table 3: Sold Energy (GWh) Page 17 of 18

18 All Types of Customers Total 142, , , , , ,098 Table 4: Number of Customers All Types of Customers Total 4,246,898 4,491,717 4,727,371 4,955,906 5,182,539 5,420,810 Table 5: Distribution Networks Lengths (13.8 KV 69 KV) Distribution Networks Total 132, , , , , ,400 Table 6: Proposed Investment Opportunities Name of IPP MW Investment Completion Awarding Location Power Plant Power in Billion $ Agency Rabigh 1, June 2012 SEC Western Province Riyadh PP-11 2, April 2012 SEC Central Province Qurayyah 2, April 2014 SEC Eastern Province The total overall investment required for the above three projects is around $5.5 billion. Table 7: Other Long Term Planned Independent Power Projects by SEC Name of IPP Power Plant Date of Award Capacity in MW Investment in Billion $ Start of Operations Daba Phase Jubail/Ras Azzour Phase , Jubail/Ras Azzour Phase , Daba Phase Jeddah South Phase , Shuqaiq Phase Al Uqair / Salwa Phase , Jeddah South Phase , Al Uqair / Salwa Phase , Page 18 of 18