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FINANCIAL NEWS
Saudi Arabia to liberalise electricity sector by 2014
24 Sep 2012
(MENAFN) Saudi Arabia unveiled plans to open the door for investments in its electricity sector by 2014, Arab News reported.
Experts attending the MEED Saudi Mega Infrastructure Projects Summit have said that the government aims to create a competitive market for electricity generation in the Kingdom, which is currently controlled by Saudi Electricity Company (SEC).
A liberalised power sector is expected to help ease increasing electricity demand in the Kingdom, which rose by 8.9 percent to 51,000MW in 2011.
They added that the privatisation process will include dividing SEC’s electricity generation business into similar companies that will compete with each other and with SEC’s independent power providers (IPPs).
SEC will also set up a single buyer of electricity from the four electricity generation companies and the IPPs.
A single separate transmission company has already been established and has been in operation since January 2012.
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