RIYADH: Saudi Arabia said Saturday it would need to invest SR300 billion ($80 billion) in electricity generation and distribution over the next ten years to cater for domestic demand that is growing by 8 percent a year.
“The Kingdom currently produces 40,000 megawatts of electricity,” said Water and Electricity Minister Abdullah Al-Hussayen in remarks carried by the Saudi Press Agency.
By 2015, the Kingdom will add 5,200 megawatts in new capacity of which 3,200 megawatts will be operational in 2013, the minister said while opening a workshop of electricity investment organized by his ministry in cooperation with World Bank.
Al-Hussayen spoke about the ministry’s efforts to encourage the private sector in participating in the Kingdom’s electricity projects through the build, own and operate system.
The current investment program includes three projects: The Rabigh plant to produce 1,200 megawatts in 2013; the 11th Riyadh plant to operate in 2013 with a capacity of 2,000 megawatts; and the Qarya plant to produce 2,000 megawatts by 2015.
He said the new electricity projects would be financed by local, regional and international banks. He said the sukuk issues in local capital market to finance electricity projects had received good response from investors.
“It shows that there are investors seeking such investment products,” the minister said. “As a result of this response we decided to increase the sukuk issue to SR6 billion.” He stressed the ability of Saudi banks and other financial institutions in funding electricity projects in the Kingdom.
