Renewable Energy is

a Strategic Option for KSA

Eng. Hamed A. Al Saggaf IPP & RE Sector Executive Director

Saudi Electricity Company

1

Renewable

Energy is a

Strategic

Option for

KSA

Demand Challenges

RE is a Strategic Option

SEC Initiatives

Content

2

KSA Initiatives of RE

RE Challenges

21,7 23,6 23,9

26,3 27,8 29,9 31,2

35,0 38,0

41,2 45,7

48,4 51,9

53,9 56,5

62,3 59,0

62,5 66,3

70,3 74,5

79,0

83,7

88,7

94,0

99,7

105,7

112,0 115,7

119,0 122,6

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GW

Demand Challenges

3

RE is a strategic option

Production and consumption of oil in Saudi Arabia

Mill

ion

Bar

rel/

Day

0

2

4

6

8

10

12

14

200

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200

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10.5

10.9 10.7

10.3 10.7

9.7 10.1

11.1 11.6

11.5

2013

~12

11.5

3.1

2045

Oil Consumption

Oil Production

~16

Production Year

Current technical production limits

Oil consumption Available for Export

4

RE is a strategic option

Generating Types – Subsidized Fuel Price Generating Types – Market Fuel Price

85 92 108

314

706

354

275

340

1062

174

69 74 91 171

392

213 158

232

751

119

0

200

400

600

800

1000

1200

SCG

T

CC

GT

Stea

m PV

CSP

Win

d

Ge

o-T

her

mal

Nu

clea

r

PV

Sto

rage

ISC

C379

312

655

314

706

354

275

340

1062

379

261 218

354

171

392

213 158

232

751

253

0

200

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SCG

T

CC

GT

Stea

m PV

CSP

Win

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o-T

her

mal

Nu

clea

r

PV

Sto

rage

ISC

C

SAR

/MW

h SA

R/M

Wh

The average of levelized electricity cost

5

RE is a strategic option Comparison of Fuel Prices

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0

10

20

30

40

50

60

70

Diesel ($/bbl) Crude oil ($/bbl) Heavy Oil ($/bbl) Gas ($/MMBTU)

$/Barrel

PV Breakeven SEC new Price International

34,3 35,2

41,0

46,7

54,4 56,6 57,8

62,3 61,4

53,7

42,4

36,6

0

10

20

30

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50

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70

Jan

-15

Feb

-15

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-15

Ap

r-1

5

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-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

SEC Contribution during peak load

0

1000

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7000

8000

Jan

-15

Feb

-15

Mar

-15

Ap

r-1

5

May

-15

Jun

-15

Jul-

15

Au

g-1

5

Sep

-15

Oct

-15

No

v-1

5

De

c-1

5

Monthly average for solar energy

25 stations in KSA for solar radiation monitoring

Wat

t h

ou

r/m

2/d

ay

RE VS Annual peak load

7

Load GW

RE is a strategic option

• Wind speed at high potential areas

8.5 m second/year

• Expected generation 400 – 700 kWh/m2

• KSA Wind energy potentials 100–175 TWh/year

Solar Radiation

• Average sunrise 8.4 to 9.2 hour/day

• KSA receives highest rate of solar radiations

2080 to 2450 kWh/m2/year • Solar PV potentials 732-953 TWh/year

Wind Speed (m/second)

KSA Resources of RE

8

RE is a strategic option

Waad Al Shamal

Al Guryat

Al Aqaba Al Jouf Rafha

Hurimla

Mahd Al Dhahab Umloj

Farasan Najran Sharora

Duba

Layla Al Aflag

Joba

Madinah

Al Laith

Selected sites for SEC renewable energy initiatives

9

SEC Initiatives

KSA has the natural resources of sun and

wind

High cost of diesel consumption

high cost of diesel fuel transportation to remote areas

High cost of generation in selected areas

Drivers for SEC initiatives

SEC Initiatives

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SEC Vision for RE:

Explore RE Resources in the

Kingdom to save liquid fuel, reduce

emissions, protect environment and

improve public health.

Current status on RE (SEC):

Initiated Projects Capacity

(MW)

Expected

Operation

Al Jouf IPP PV 80

End by 2017 Rafha IPP PV 20

Umluj IPP Wind 50

Operational Projects Capacity (KW)

Farasan Solar PV

Project 500

2 Rooftop on 2

Schools 60

Ongoing Projects: Capacity (MW)

Duba CSP 50

Wa’ad Al-Shamal CSP 50

Solar PV Layla Aflaj 10 – 50

Huraymila Wind 2.7

SEC Initiatives

12

Subsidy on Fuel

RE Impacts on Grid Stability

Technological Aspects

Harsh Climate Operational Practices & Reserve

Management

RE Challenges

KSA Initiatives of RE

Adding 3.45 GW of RE to National Energy Mix

Adding 9.5 GW of RE to National Energy Mix

Sector Structure and Commercial Model: Best Practices Based on our benchmarks

Strong Policy Making Ministry of energy to control the Integrated Resource Planning process and support its implementation

Integrated conventional and RE

procurement

IPP procurement for both conventional and Renewable Energy to exist within one entity – Principal Buyer

De-Risking Private Sector Investments

Remove private sector hurdles by providing land, conducting geotechnical, environmental and interconnection studies. SLA’s will need to be signed between concerned stakeholders

Clarity of procurement process

A procurement model with well-defined evaluation and qualification criteria, transparent and eliminate conflict of interest.

Cost-recovery assurances

Ensure cost recovery for IPP investors through an independent body.

Governance All key principles are adhered (e.g. transparent, competitiveness, and no conflict of interest, etc.), the Boards/IPP office representation need to be ‘Neutral’

Timaa (Area II) Average GHI: 2,292 kWh/m2/year Peak Load: 1,217 MW

RANIA (Area II) Average GHI: 2,234 kWh/m2/year Peak Load: 89 MW

MADINAH Taibah (Area II) Average GHI: 2,234 kWh/m2/year Peak Load: 263 MW

TAIF (Area II) Average GHI: 2,321 kWh/m2/year Peak Load: 100 MW

TABUK (Area II) Average GHI: 2,237 kWh/m2/year Peak Load; 975 MW

5th

8th

13th

14th

15th

AL BAHA (Area II) Average GHI: 2,237 kWh/m2/year Peak Load: 52.5 MW

NAJRAN (Area I) Average GHI: 2,438 kWh/m2/year Peak Load: 483 MW

SHARURAH (Area I) Average GHI: 2,424 kWh/m2/year Peak Load: 126 MW

AFIF (Area II) Average GHI: 2,292 kWh/m2/year Peak Load: MW

1st 2nd 7th 12th

SHAQRA (Area II) Average GHI: 2,245 kWh/m2/year Peak Load: 2.5 MW

RIYADH R. Station (Area II) Average GHI: 2,256 kWh/m2/year Peak Load: 10,819 MW

AL-DAWADMI (Area II) Average GHI: 2,285 kWh/m2/year Peak Load: MW

LAYLA Aflaaj (Area II) Average GHI: 2,336 kWh/m2/year Peak Load: 110 MW

WADI ADDASIR (Area II) Average GHI: 2,336 kWh/m2/year Peak Load: 316 MW

RIYADH KA Care City (Area II) Average GHI: 2,307 kWh/m2/year Peak Load: 10,819 MW

3rd

4th

6th

10th

9th

11th

15 High Annual GHI Potential Cities (kWh/m2/year)

Note: 1.Area I (High) ;≥ 2,400 kWh/m2/year 2.Area II (Medium); ≥ 2,200 to 2,399 kWh/m2/year

15 High Wind Potential Areas of Saudi Arabia

Aqaba Area I: 500 km2 Wind Speed; 9.5–12 m/s Esti. Potential; 2,000 MW

Alkhuraybah Area II: 200 km2 Wind Speed; 7.8 – 8.7 m/s Esti. Potential; 800 MW

Alshadakh Area II : 225 km2 Wind Speed; 7.8– 8.3 m/s Esti. Potential; 850 MW

Bani Amr Area II : 100 km2 Wind Speed; 7.9 – 8.3 m/s Esti. Potential; 400 MW

Near Abshakeyr Area II: 325 km2 Wind Speed; 7.6– 8.1 m/s Esti. Potential; 1,300 MW

Halaba Aseer Area II : 150 km2 Wind Speed; 7.8 – 8.2 m/s Esti. Potential; 600 MW

Near Sharmaa Area II: 400 km2 Wind Speed; 8 – 9 m/s Esti. Potential; 1,600 MW

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Bil Haris Area II : 100 km2 Wind Speed; 7.7 – 8.1 m/s Esti. Potential; 400 MW

Alkaleba Baha Area II : 150 km2 Wind Speed; 7.7 – 8.3 m/s Esti. Potential; 600 MW

Shaib Al Arar Area II: 100 km2 Wind Speed; 7.7 – 8.5 m/s Esti. Potential; 400 MW

Al Baha Area II : 70 km2 Wind Speed; 7.7 – 8.1 m/s Esti. Potential; 250 MW

Near Sehat Area II : 100 km2 Wind Speed; 7.9 – 8.2 m/s Esti. Potential; 400 MW

Near Bni Saad Area II : 200 km2 Wind Speed; 7.7 – 8.2 m/s Esti. Potential; 800 MW

Near Shigry Area II : 100 km2 Wind Speed; 7.8– 8.1 m/s Esti. Potential; 400 MW

Al Bad’ Area II : 50 km2 Wind Speed; 7.7– 8.3 m/s Esti. Potential; 200 MW