JEDDAH — Saudi Arabia will need to invest over SR500 billion ($133 billion) over the next 10 years to meet rapidly rising power demand, Saudi Water and Electricity Minister Abdullah Al-Hussayen said at the Saudi Water & Power Forum & Exhibition (SWPF) 2012. “There is a need for projects over the next 10 years with investments that exceed SR500 billion," he said.. Power consumption rose by 9 percent in the first half of 2012 from last year's figure, he said, adding that peak demand in the summer was up 7 percent, or an increase of 3,500 megawatts. In May, Saudi Arabia's deputy electricity minister revised up estimates for the amount of investment needed in power projects over the next decade to SR400 billion from SR300 billion. Saudi Arabia plans to generate some electricity from solar and nuclear plants and is also considering wind, waste and geothermal energy sources as it seeks to reduce reliance on oil and gas. How much of the Kingdom's future energy mix will be met by each technology may be agreed in the first quarter of next year, Khalid Al-Sulaiman, vice president for renewable energy at King Abdullah City for Atomic and Renewable Energy, told the forum. At the opening ceremony on Sunday, Al-Hussayen said “SWPF will take a fresh look at the opportunities for participation and will focus on how we can work together to meet growing demand for more efficient use and sustainable water and power." Prince Misha'al Bin Majed bin Abdulaziz, Governor of Jeddah, who officially inaugurated the forum at the Jeddah Hilton, presented the prestigious SWPF Award for Innovation and the Marafiq Award for Sustainability. Saudi Arabia's power sector will remain among the most dynamic in the Gulf Cooperation Council over the short-term, Business Monitor International said recently in its Saudi Power Report for the fourth quarter of 2012. While the pace of growth achieved over the past couple of years (real GDP grew by an estimated 7.1 percent in 2011) will be difficult to sustain over the medium term, the report said, positive economic and demographic dynamics, coupled with sector-specific developments will continue to support an healthy growth outlook for the country's power sector in the coming years. The country is already executing an ambitious $80 billion expansion plan for power projects, with the Kingdom's Ninth Development Plan (2010-2014) aiming to raise generating capacity by 20.4 gigawatts (GW) by 2014. BMI forecast that the country will be able to meet its commitments, with total installed capacity to reach just over 72GW by 2014. Plans to include non-hydro renewable sources, namely solar, have started to take shape in the Kingdom, with the country announcing in May 2012 that it is seeking $109 billion of investment. — SG
