Saudi's transmission mission
Saudi Arabia decouples its transmission; UME looks at likely outcomes
In response to the news that the Saudi Electric Company is to establish a national firm to deal with the transmission of the Kingdom’s electricity, Abhay Bhargava, Industry Manager, Energy and Power Systems Practice at ICT Practice, MENA, Frost & Sullivan, discusses the move.
“This de-coupling of transmission was expected, and is a result of the overall restructuring efforts SEC is undergoing. It is also in line with what has already been witnessed in the region, specifically in Oman and the UAE. This action will definitely result in better management of the networks and higher efficiency levels, looking at past precedence across the world.
Further, we expect that this will lead to a possible private participation in the sector, riding
on the success that Saudi Arabia has witnessed through private participation in Power generation.
“Based on Frost & Sullivan estimates, KSA will account for more than 70 per cent of the GCC’s $35 billion spend on power T&D up to 2015.
Hence, this restructuring will have a significant impact for vendors in the future. Saudi Arabia’s spend on T&D is largely
accountable to the factors such as setting up a nation-wide grid to enable reach into more regions, and replacement of ageing infrastructure.
This move is also expected to be an
enabler for smart grids, which has so far not gained any traction in what is the GCC’s largest power T&D market.”