Power and Electricity

The Kingdom of Saudi Arabia has given the energy sector a strict focus during the past two decades as interest in the sector has increased. Many serious investments have begun to enter into force, especially after the Kingdom's significant role in the global energy sector was demonstrated during the Corona pandemic, in line with the Kingdom's Vision 2030 for the energy sector. Energy, to achieve the expected developments for the sector, with a focus on the field of renewable energy, is considered one of the most important future fields that represent an essential investment for the Kingdom. In addition, the Kingdom is keen to achieve a primary mission of leading the energy field in accordance with a practical governance framework that enhances the efficient use of resources, works to maximize benefit management, provides an attractive environment for investments, and creates national services and products based on creativity and innovation, in order to achieve sustainable development.

The Kingdom's vision for the energy sector

The Kingdom follows a continuous and escalating pattern that aims primarily at achieving further development in the energy sector in order to achieve the Kingdom's goals and transcend its vision for the energy sector. These goals include: diversifying the national energy mix used in electricity production, achieving the optimal, most efficient, and least expensive energy mix, increasing the share of The Kingdom in producing renewable energy to the optimum extent, achieving balance in the mix of local energy sources, fulfilling the Kingdom's commitments towards reducing carbon dioxide emissions.
 
The Kingdom also wants to take advantage of its distinguished geographical and climatic location, which makes available energy sources a central and essential economic support, which made the main goal of the Saudi Ministry of Energy to ensure the sustainable development of the integrated oil, gas and mining industry in all its stages to achieve the highest value added to the national economy, in addition to To work on discovering and exploiting the Kingdom's resources of oil, gas, and minerals and achieving the highest returns from them.
 

The objectives of the Kingdom of Saudi Arabia in the field of energy

The Kingdom aims to achieve global leadership in the energy sector leading towards an innovative future through sustainable development through highly efficient development policies, programs and plans aimed to maximize the value added generated by the sector in order to achieve sustainable development and develop the Kingdom's capacity to address existing challenges while emphasizing the importance of preserving the national wealth of energy for future generations,
The Ministry of Energy has therefore set out a set of strategic objectives, which are limited to:
  • Increasing consumption efficiency and economic development.
  • Leadership in energy markets.
  • Maximizing financial benefit.
  • Promote local content.
  • Carbon management.
  • Security and reliability of supplies.

Institutional strategy and system programs of the Ministry of Energy

Electricity sector

The Kingdom's electricity sector is undergoing a major transformation through a series of organizational, structural, and financial changes and reforms in line with Vision 2030. These reforms have resulted from collective efforts under the supervision, support, and follow-up of the High Committee for Energy Mix and Empowerment of Electricity. All relevant entities participated in those efforts through the Electricity Sector Integration System, the Ministerial Committee for the Restructuring of the Electricity Sector, and the Saudi Electricity Company.

 

Integration of the electricity sector

The Ministry of Energy coordinates with the Water and Electricity Regulatory Authority and oversees its implementation after its adoption, thereby protecting consumers' rights and achieving equity among consumers, economic growth, and the welfare of society.
 
In light of the policies and strategies adopted, the Ministry is preparing, adopting, and ensuring the implementation of the sector's development plans and programs, including:
 
  • Development of sector structure.
  • Determining the contribution of renewables to the optimal energy mix for electricity production
  • Displacing liquid fuel at generating plants and replacing it with gas and renewable energy sources.
  • Increase the use of automation applications and smart networks to ensure that electrical service is provided with high reliability and efficiency at the lowest possible cost.
  • Strengthen the Kingdom's electrical grid and deliver electricity to areas that have not reached it, while encouraging the private sector to contribute to electrical activities and enabling it to achieve a fair economic return on commercial grounds.
  • Maximize local content in electrical goods and services; localize jobs, and support R&D activities related to the electricity sector.

Energy Mix Optimisation

The optimal energy mix program for electricity production aims to increase generation efficiency and reduce costs by diversifying energy sources for electricity production, depending on available techniques and the sector's strategic directions, including reducing emissions, and is based on removing liquid fuels from the system primarily to diversify the energy mix of renewable energy and gas, with quotas of up to 50% each by 2030. Energy mix targets are updated and reviewed periodically.
 

Renewable Energy

The Ministry of Energy seeks to integrate and interconnect all different energy sectors and to promote the national and global economy as a key engine for growth, including conventional, renewable and nuclear energy for future peaceful uses; By embracing innovative solutions to maximize the Kingdom's economic benefit from the sector as a whole. Renewable energy initiatives that integrate hydrocarbon resources in energy production include.
 
The National Renewable Energy Program is a strategic initiative under the Custodian of the Two Holy Mosques Renewable Energy Initiative and Vision 2030, which aims to optimize Saudi Arabia's share of renewable energy production and is designed to balance the mix of local energy sources and meet Saudi Arabia's commitments to avoid emissions.
 
Through the program, the Ministry of Energy is diversifying the national energy mix used in electricity production by increasing the share of gas and renewable energy sources, as the Kingdom aims to achieve the optimal energy mix and the most efficient and least expensive electricity production, by removing liquid fuel consumed as fuel in electricity production and compensating for it with gas and renewable energy sources Energy ", which will constitute approximately 50% of the energy mix for electricity production by 2030.
 
In addition, the Ministry is developing the renewable energy sector by creating a local competitive market that contributes to increasing private sector investment and encourages public-private partnerships. The success of the Ministry's work to date is underscored by the fact that the Kingdom has achieved the most competitive prices globally in wind and solar electricity generation projects.
 

Saudi Energy Efficiency Center

The Saudi Energy Efficiency Center was established in 2010 to rationalize and upgrade the efficiency of energy use in production and consumption to conserve the Kingdom's natural resources and promote the economic and social well-being of the Kingdom.
 
The Saudi program was launched in 2012 to rationalize and upgrade energy efficiency as a specific framework for a working system that coordinates energy efficiency efforts in the Kingdom and includes several relevant government agencies, institutions, government companies, and the private sector.
 
The Saudi Energy Efficiency Center program aims to improve and increase the efficiency of energy consumption in three major sectors that account for more than 90% of the Kingdom's primary energy consumption: Industry, buildings, and land transport where the program contributed to the launch of energy efficiency initiatives, cooperating with more than 30 governmental and semi-governmental actors through task forces that prepared more than 80 initiatives at different stages.
 
In addition, the Saudi Energy Efficiency Center's work was expanded in 2018 to include the following:
 
  • Adding benefit sectors: energy efficiency in energy production, electricity distribution, and desalination.
  • Expansion of the scope of the Industry Section: Adding the efficiency of using values in industrial processes.

National Energy Efficiency Services Company Program "Tarshid"

 
National Energy Efficiency Services Company is an entirely owned national company of the Public Investment Fund. Tarshid was launched in 2017 as the Kingdom's leading energy efficiency services company, serving the national strategic sustainability goal of achieving significant energy savings. It also aims to play a key role in developing this sector by establishing a thriving energy efficiency industry in the Kingdom, attracting international energy actors, attracting foreign investment, and contributing to creating thousands of highly skilled jobs.
 

Integrated Energy Strategy Program

 

Sustainability Programs

 
  • Carbon Circular Economy Program.
  • Sustainable Petroleum Demand Program.

Saudi Arabia's energy initiatives

 
The Ministry of Energy has launched several initiatives aimed at maximizing the economic impact and achieving value added by enabling the basic infrastructure environment to create a promising investment environment that attracts qualitative investments and achieves the Kingdom's leadership in the field of energy among the countries of the world.
 

Electricity Integration System Initiatives

  • Restructuring of the power sector.
  • Export electric power.
  • Energy mix for electricity production.
  • Smart meters.
  • Displacement of liquid fuel.

National Carbon Circular Economy Program Initiative

The Kingdom launched the National Carbon Circular Economy Program to develop basic strategies that incorporate the main foundations and principles for the replacement and localization of advanced carbon management techniques by applying the concept of a carbon circular economy.
 
The program is the result of joint efforts with those responsible for formulating joint implementation mechanisms covering all technical, administrative, engineering, and normative aspects to achieve strategic objectives aimed at achieving social and economic growth in sustainable ways, promoting integrated solutions to climate change, and ensuring global leadership in the carbon circular economy.
 

Saudi Green Initiative

Based on Vision 2030, Saudi Arabia has taken tireless steps to build a more sustainable future. The Saudi Green Initiative was launched in 2021 to guide more care for environmental protection, energy transformation and sustainability programs in Saudi Arabia to achieve its overall objectives of offsetting and reducing carbon emissions, increasing the use of clean energy, and combating climate change.

The tasks and responsibilities of the Initiative:

  • To oversee all the Kingdom's efforts to combat climate change under one umbrella.

  • Consolidate government and private sector efforts to identify and support opportunities for cooperation and innovation.
  • Promoting the green economy. The first package, comprising more than 60 new initiatives and projects within the framework of the Saudi Green Initiative, represents an important investment in this context.
  • Accelerating the green transition and playing a global leadership role in applying the concept of a circular carbon economy.
  • Raising the quality of life and protecting the environment for future generations in Saudi Arabia.

Aims of the Initiative:

  • Reduce carbon emissions.

  • Planting Saudi Arabia.
  • Protection of land and marine areas.

King Salman Renewable Energy Initiative (Skaka Solar Project)

The Sakka Solar Photovoltaic Power Plant Project in Al-Jawf is the first project of the Custodian of the Two Holy Mosques Renewable Energy Program, which works to use solar energy through (PV) to generate electricity.
 

Project objectives:

  • Conserve the environment by reducing greenhouse gas emissions.

  • Contribute to liquid fuel displacement program.
  • Contribute to optimal energy mix.
  • Contribute to the format of the carbon circular economy features.

Saudi Arabia's oil sector

The Kingdom has gained a leading position in the global petroleum industry. It has employed this position to achieve stability and balance in the global petroleum markets, through its participation in the founding of the Organization of Petroleum Exporting Countries (OPEC), with Kuwait, Iraq, Iran, and Venezuela in 1960. It also participated in the establishment in 1968 of the Organization of Arab Petroleum Exporting Countries (OPEC),  where the Kingdom's huge petroleum reserves are among the least expensive globally. The Kingdom has 19% of global reserves, 12% of global production, and more than 20% of global oil sales. It also has a refining capacity of more than 5 million barrels per day, both internally and externally. The Kingdom's fixed petroleum reserves are estimated at about 267 billion barrels.
 
The Kingdom's influential role in global energy was evident during the coronavirus pandemic, where it reached the historic OPEC Plus agreement, and its subsequent efforts to strengthen the commitment of countries to their quotas from the cut, compensate for the excess amounts of quotas, and the impact of this agreement on the stability of global markets.
 

Saudi Arabia's Gas Sector

Natural gas is an important natural resource in the Kingdom, and the Ministry of Energy seeks to maximize its exploitation through exploration, production, and investment. Natural gas is used to meet the growing demand for energy in the domestic market, where it is used as fuel for power plants and desalinated water production, in addition to being used as a staple (for values) for several manufacturing industries, as well as fuel in other industrial sectors. Today, the Kingdom is the seventh-largest natural gas market in the world. Although the main gas network can eliminate the associated gas burning, the gas burning density in gas flares is the lowest globally, with less than 1%. The Kingdom aims to stop routinely burning gas in burners by 2030.
 

Saudi Atomic Energy Sector

King Abdullah City for Atomic and Renewable Energy is working within the Kingdom's energy system to develop and implement national plans to enable atomic energy to contribute to the national energy mix to meet the requirements of sustainable national development within the objectives of Vision 2030 and to strengthen the Kingdom's role internationally as a leader and actor in the field of energy.
 
One of the most important benefits of introducing the Kingdom's atomic energy is to diversify energy sources and maximize their positive impact on the economy and the environment, rather than relying entirely on petroleum and its derivatives for energy production, thereby maximizing the use of petroleum resources over time for future generations. Atomic energy and its peaceful applications will also contribute to electricity generation and address some of the challenges facing the Kingdom, such as the challenge of the Kingdom's water scarcity by expanding the use of atomic energy for the desalination of salt water.
 
The National Atomic Energy Project launched by the Kingdom is fully in line with the Kingdom's international obligations and national policy to adopt peaceful nuclear technologies in development and energy production, and its firm commitment to using the highest international standards and best practices on nuclear safety and security.
 
An independent entity on nuclear control and safety was established as the "Nuclear and Radiation Control Authority" 
 
"The Council of Ministers decided on 25/6/1439 A.H., as the national body responsible for monitoring and monitoring radiological and nuclear emergencies in the Kingdom, and it plays a key role in the national plan for responding to radiological and nuclear emergencies."
 
A nuclear holding company was also established to be an independent legal entity concerned with pursuing and realizing the commercial interests of the National Atomic Energy Project in the Kingdom by participating in and investing in projects and assets of economic relevance locally and globally.

Target sectors to improve energy efficiency

Industry

The industry sector

The industry sector is concerned with improving energy efficiency and using values in the industrial sector, which consumes about 48% of the total primary energy consumed in the Kingdom. Accordingly, efforts and initiatives in the field of industries with intensive consumption have been concentrated through the development of policies, regulations, and procedures necessary in full cooperation and coordination with the relevant authorities and the use of international expertise in this field. The current scope of work covers all existing and new factories that fall within the petrochemical, cement, iron, and aluminum sectors and are under operation, feasibility study, design, or implementation.
 
Regarding value efficiency, the scope of work focuses solely on raw materials, including hydrocarbon fracturing, ammonia, methanol, propane dehydrogen (PDH), and isobutylin, and benzene-toluene-xylene (BTX).
 

Buildings

The buildings sector consumes about 29% of the primary energy consumed in the Kingdom. The Buildings Department seeks to improve and increase energy efficiency in the buildings sector by developing technical regulations, policies, regulations, and procedures in cooperation with the relevant authorities. Scope of work: The scope covers all government, commercial and residential buildings, including construction systems as well as electrical and electronic systems and appliances used in such buildings.

Transport

The transport sector consumes 18% of the total primary energy consumption in the Kingdom, which is equivalent to 810 thousand barrels of fuel per day. Since 2012, the Center has cooperated with all relevant authorities to implement several initiatives to improve the fuel economy in imported light vehicles. The Saudi Fuel Economy Standard aims to improve the rate of fuel economy of vehicles in the Kingdom by about (3%) per year to move it from 12.5 km per liter of fuel in 2015 to approximately 17.8 km/l fuel by 2023.
 

Electronic transport services

Some energy-related regulations

Important links