Utilities
From The Report: Saudi Arabia 2013
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The utilities sector is enjoying huge investments into expansions and capacity upgrades, with around SR500bn ($133.25bn) to flow into the electricity and water segments in the coming decade. Saudi Arabia has ambitious plans to build up renewable electricity generation capacity, in particular solar power, to address rapidly rising energy consumption. The Kingdom is investing in water desalination plants and looking at new technologies, like solar desalination, to improve efficiency. Another marked feature of the sector, looking ahead, is likely to be more private investment. The government is implementing new policies to encourage businesses to undertake energy efficiency reforms, such as by limiting supply if firms do not meet stipulated targets. Meanwhile, construction and engineering contracts will make for plenty of opportunity for such firms for years to come.

Articles from this Chapter

Overview

Powering up: Looking at new ways to improve efficiency and sustainability
OBG
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Investment is being poured into expansions and capacity upgrades across the sector, with around SR500bn ($133.25bn) to flow into the electricity and water segments in the coming decade. Saudi Arabia has ambitious plans to build up renewable electricity generation capacity, in particular solar power, to address rapidly rising energy consumption. The Kingdom is investing in water desalination plants and looking at new technologies, like solar desalination, to improve efficiency. Private investment…

Analysis

Projects ahead: New initiatives and privatisation aim to create competition
OBG
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While Saudi Electric Company (SEC) remains majority state-owned, several initiatives are under way to bring private investment into the sector. Investment is already flowing in the form of independent power projects (IPPs), with some already up and running, and other major projects in the pipeline for the near future. The Kingdom is also currently in the process of “unbundling” its electricity generation, transmission and distribution assets with a view to creating competition in the market and,…

Analysis

Refreshing efforts: Improving desalination technology to meet water demand
OBG
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With little rainfall, scarce and depleting groundwater and high consumption per capita (see overview), Saudi Arabia is heavily reliant on desalination for water provision. As a consequence, the Kingdom is now the largest producer of desalinated water in the world and is investing heavily in new plants to keep up with demand, aiming to nearly double capacity in just a few years. However, the process is costly and energy-intensive. To address this Saudi Arabia is investing significant capital to develop…