KSA Energy Strategy

KSA Energy Strategy

A personal view

KSA Energy Strategy

Current situation in KSA

1. Current generating power is only marginally above demand

2. In the summer the lunchtime and early evening peaks are covered using diesel generation - $6m of diesel/day ($2bn/yr)

4. If nothing is done in 15 years all current oil production will go to the domestic market and there will be little left for export

5. Electricity generation is set to rise from 14GW to 30GW in the next 15 years

6. Conventional and sustainable energy sources are going to be used to meet this requirement.

KSA Energy Strategy

Power Usage

1. 80% of current power generation is for buildings

2. Over 50% of the total is used in the domestic sector

3. Over 70% of the properties have minimal or no insulation

4. Expecting to build 1.65m accommodation units in the next “five years”

Greater London has around 1.9 million accommodation units

KSA Energy Strategy

KSA Energy Strategy

A personal view

KSA Energy Strategy

Project Stakeholder StatusMilestones

Jizan Refinery Power Plant - 2,600 mW ($1.8 bn) Aramco FEED Award Q4 13

3 new independent power plants ($1bn) Aramco/SEC PQ EPC 2013

Jubail Independent water, steam & power project Marafiq & Sadara

IPP 500 mW power plant for the steel mill ($500m) Dongbu Corp Design

Power plant and Desal plant and Yanbu Phase IIl Marafiq

AL-Ghad Power and Utility Plant ($300m) Itlalat Al-Ghad TenderAward Q1/13

Rabigh IWSPP Expansion ($500m) RAWEC Study ITB 02/13

Salbukh Power Plant 1725 MW ($750m) SEC StudyITB March

2013

Al-Muzahimiyah Power Plant SEC

PP13 – 1,800mW Gas Combined Cycle SEC Plan 2015 18/19

KSA Energy Strategy

Project Stakeholder StatusMilestones

Rafia PP2 Gas Turbine Plane SEC Plan 2014 2017

Jezan 2.8680 mW Steam Turbine SEC Plan2012

Finish 2017

Ras Abu Qamis 3,600 mW Steam Turbine SEC Plan20114

Finish 2019

Ras Al Khair 3,600 mW Steam Turbine SEC Plan2014

Finish 2020

Al Rais 1,600 mW Steam Turbine SEC Plan2015

Finish 2019

Dibba Phase 11,600 mW Steam Turbine SEC Plan2012

Finish 2017

South Jeddah Phase 2 1,800 mW Steam Turbine SEC Plan2013

Finish 2019

Dibba 2 1,800mW HFO SEC Plan 2013

Rabigh 2 1,800 mW SEC Plan 21 Oct

KSA Energy Strategy

Strategy for Sustainable Energy

February last year the Ministry of Energy was formed with a mandate to legislate on the insulation levels for properties

Dr. Saleh Alawaji - Deputy Minister for Electricity

• Green building is important as it is now a major mandate of the Government

• Enforcement for thermal efficiency is required

• Promote air conditioners efficiency

Main points:• Enforcement of thermal efficiency

• Create a national energy efficiency centre

• Revise electricity tariff especially for industry

KSA Energy Strategy

Project Stakeholder StatusMilestones

16 Nuclear power plants ($300bn) KACARE Plan

Renewable Energy Ph1 & 2 6,650 mW ($12 bn) Plan

Fasan Island Solar project $30m SEC Plan Q2 /14 Q2/16

100 mw solar power plant - Makkah Plan

4GW of geothermal and waste-to-energy KACARE Plan 17GW by 2032

Dibba 1 600mW Integrated combined cycle using CSP SEC ITB April

2MW solar power project Aramco Plan

KSA Energy Strategy

IAEA Milestones

Phase 1 Considerations before a decision to launch a nuclear power programme is taken.

Milestone 1 Ready to make a knowledgeable commitment to a nuclear programme

Phase 2 Preparatory work for the construction of a nuclear power plant

after a policy decision has been takenMilestone 2 Ready to invite bids for the first nuclear power plant Phase 3 Activities to implement the first nuclear power plantMilestone 3 Ready to commission and operate first nuclear power plant

KSA Energy Strategy

• National position• Nuclear safety• Management• Funding and financing• Legislative framework• Safeguards• Regulatory framework• Radiation protection• Electrical grid• Human resource development

• Stakeholder involvement• Site and supporting facilities• Environmental protection• Emergency planning• Security and physical protection• Nuclear fuel cycle• Radioactive waste• Industrial involvement• Procurement

KSA Energy Strategy

KSA Energy Strategy

Insulation

There are 7.1 million dwellings in the Kingdom

Houses and apartments use over 50% of power generation

Over 10 years install externally placed insulation - SR 100bn

Saving estimated last year when oil was around $80/barrel is in the order of $125 bn

The issue is not about the cost of electricity but the amount of oil that could be saved is less was used.

KSA Energy Strategy

KSA Energy Strategy

Types of Renewable Energy

1. Solar Hot water2. Photovoltaic3. Concentrated solar power4. Biomass5. Geothermal

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

KSA Energy Strategy

Water Usage

KSA produces only a relatively low percentage of its water from

desalination and the exisiting water table has a limited life

Over 70% of potable water is used for agriculture - used once

and much is lost

Recycling of water is currently only being considered for

industrial uses

Solar desalination is being considered in the GCC

Controlled farming is under investigation worldwide

KSA Energy Strategy

Future Cities

Cities and buildings of the future must be efficient in water and energy

Public transportation should use energy efficient systems and provide

a comprehensive service

Food should be produced locally in purpose build facilities

Black water should be recycled and the days of drinking bottled water

are likely to be limitted.

The production, processing, packaging and delivery of foodstuffs uses

over 40% of hydrocarbon products

The price of the imported fruit in Tamimis does not reflect the actual

cost on an environmental basis.

KSA Energy Strategy

KSA Energy Strategy

Controlled Farming

KSA Energy Strategy

Personal Rapid Transport

KSA Energy Strategy

Summary

Although energy is inexpensive in the Kingdom the actual cost is

similar to other countries

Use of technology available today can and does save large

amounts of energy around the world

Future cities will have to move towards energy efficiency, water

recycling, new forms of public transportation and food

production

Controlled farming will allow land to return to nature will help

combat global warming

Arthur C Clarke - we are moving to a currency based on the kWhr

KSA Energy Strategy

Thank you