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DAMMAM: The Kingdom needs to invest SR330 billion ($88 billion) over the next 10 years as demand for electricity continues to grow 7-8 percent annually, Water and Electricity Minister Abdullah Al-Hussayen said.
He told an industry conference on Saturday that the water and power sector would need investments of SR500 billion in the next 10 years, and that demand for water was growing by more than seven percent annually.
“It is expected that the maximum power load will reach 75,000 megawatts in the next 10 years which means the need to invest around SR330 billion to boost generation capacity and transmission and distribution networks,” Al-Hussayen said.
The figure for power investments was higher than an earlier SR300 billion given by officials as needed to boost capacity to 80 gigawatts from 50 gigawatts, but appears to also include transmission and distribution costs.
“The private sector is expected to contribute roughly 30 percent of it or the equivalence of SR100 billion,” Al-Hussayen said.
“Its an approximation ... that the demand for power is expected to continue to be growing 7-8 percent during the next 10 years,” Husayen said.
Saudi Arabia is struggling to keep pace with rapidly rising power demand, as energy revenues have fueled a region-wide economic boom.
Asked about solar power, Al-Hussayen said: “It may not be (of use) in the short term ... but maybe nuclear energy will be more than solar energy in the future.”
He told an industry conference on Saturday that the water and power sector would need investments of SR500 billion in the next 10 years, and that demand for water was growing by more than seven percent annually.
“It is expected that the maximum power load will reach 75,000 megawatts in the next 10 years which means the need to invest around SR330 billion to boost generation capacity and transmission and distribution networks,” Al-Hussayen said.
The figure for power investments was higher than an earlier SR300 billion given by officials as needed to boost capacity to 80 gigawatts from 50 gigawatts, but appears to also include transmission and distribution costs.
“The private sector is expected to contribute roughly 30 percent of it or the equivalence of SR100 billion,” Al-Hussayen said.
“Its an approximation ... that the demand for power is expected to continue to be growing 7-8 percent during the next 10 years,” Husayen said.
Saudi Arabia is struggling to keep pace with rapidly rising power demand, as energy revenues have fueled a region-wide economic boom.
Asked about solar power, Al-Hussayen said: “It may not be (of use) in the short term ... but maybe nuclear energy will be more than solar energy in the future.”
