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Solar energy is too costly for us: SEC CEO

by Utilities ME Staff on Feb 20, 2014


Saudi Electricity Company CEO Zeyad Al-Shiha
Saudi Electricity Company CEO Zeyad Al-Shiha

Saudi Electricity Company CEO Zeyad Al-Shiha said recently said solar energy is currently too costly to replace traditional methods of energy production. Producing electricity with fuel costs seven halala per megawatt, compared to 50 halala when using solar energy, Al Shiha said while speaking on the sidelines of the 16th Quality Forum currently under way in Makkah.

"The high costs involved (in producing solar energy) are linked to the manufacture of batteries that store energy and convert it to electricity, which is then channeled to the network. Such a manufacturing process is very costly and requires huge quantities of metals," he said.


He said the company would not stop using oil to generate electricity. SEC currently uses 2 million barrels a day to produce electricity.
He said subscribers do not pay electricity tariffs on a regular basis, and fuel is a subsided commodity for all citizens.


FEATURED COMMENT

Understand CEO perspective. Nevertheless, solar should be installed to complement and increase energy mix - contributing

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andre (Feb 22, 2014)
Abu Dhabi
United Arab Emirates

Solar to complement energy mix
Understand CEO perspective. Nevertheless, solar should be installed to complement and increase energy mix - contributing to energy security + access at the same time. CEO approach referes as far I understand that solar power to give 100% energy security supply. 2000K barrels oil / day @ +- 100usd = +- 200 M USD / day not sold ->direct loads can be supplied by solar, reducing by 20% means 400k barrels / day ? 40M USD / day and 14600 M USD / year... Do not forget also opex / capex costs, as we know that solar has higher upfront costs. Rough numbers


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