Present State, Challenges, and Future of Power Generation in Saudi Arabia

Electricity consumption rates in Saudi Arabia have been steadily on the rise over the past three decades. While the population of about 26 million is growing at a high rate of 3%, the growth in total number of power utility customers is increasing at a higher rate of 5%. Between 2006 and 2007, the Saudi Electric Company, SEC reported an 11.9% growth in total peak loads, which reached 34,953 MW in 2007. Studies show that power demand in Saudi Arabia is expected to continue its rapid increase to reach 60,000 MW over the coming 15 years. In addition to the high rate of population growth, the expanding in industrialization and development plans is among the factors contributing to the rapid increase in power demand in Saudi Arabia. Therefore, major steps need be taken to prepare for the expected future increase in power demand. This paper addresses the actions already taken to increase power generation and availability in Saudi Arabia, and presents recommendations for other actions needed, including the importance of shifting towards renewable energy.