THE SAUDI ARABIA POWER TRANSMISSION & DISTRIBUTION
SECTOR
OPPORTUNITIES & CHANGES
Presented by:ABHAY BHARGAVAINDUSTRY MANAGERENERGY & POWER SYSTEMSFROST & SULLIVAN INTERNATIONAL INC.
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AGENDA
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SAUDI ARABIA – RAPID ECONOMIC GROWTH ENVISAGED
Downstream
Petrochemicals &
Plastics
Power
Sector
Water &
Wastewater
General
Infrastructure
Metals &
Mining
Source: Frost & Sullivan research/
IMF/ World Bank data
SAUDI ARABIA
Inflation % 6%
Population (Millions) 26+
Unemployment % 10-11 %
Ease of doing business 1 (11)
Percentage of GCC GDP 43%
Percentage of ME GDP 27%
Percentage of GCC Power
T&D investments 70%
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SAUDI ARABIA – POWER GENERATION GROWTH PLAN
$100 Billion* spend between 2011-2020 on Power Generation
$100 Billion* spend between 2011-2020 on Power Generation
Private sector contribution expected to grow from 7.4% to 17%+
Private sector contribution expected to grow from 7.4% to 17%+
Source: Frost & Sullivan research/
SEC/ KACARE published data
Significant growth in Power GenerationGW
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SAUDI ARABIA – POWER GENERATION: INVESTMENT IMPACT
T&D lines: $ 8 – 10 Billion
Switchgear: $ 5.5 - 6 BillionTransformers:
$ 7.5 - 8 Billion
Source: Frost & Sullivan research/
SEC published dataForecasted cumulative investments till 2016
4500 – 5000 Km of 380kV lines to be
laid by 2016
Number of customers expected to increase by 26%/
1.7 Mn
Cumulative spend on T&D � ~$30
Billion (2011 -2016)
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SAUDI ARABIA – PRESENT T&D INFRASTRUCTURE
Source: SEC
Interconnection of regions the next priority in T&D infrastructure development
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SAUDI ARABIA – TRANSFORMER LANDSCAPE
2010 KSA Transformer market ~ $ 1 Billion �Only ~70 Million manufactured locally
Local manufacturing focused primarily on distribution transformers
Requirement - Technical capabilities & skilled manpower for local manufacturing
Opportunities:
• To develop local skill and expertise � Tackle unemployment issues & contribute to Saudization
• Develop local vendors for supply of components to transformer manufacturers
Source: Frost & Sullivan research
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SAUDI ARABIA – SWITCHGEAR LANDSCAPE
Source: Frost & Sullivan research
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SAUDI ARABIA – SUB-STATION EPC LANDSCAPE
Source: Frost & Sullivan research
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SAUDI ARABIA – OVERHEAD TRANSMISSION LINES EPC LANDSCAPE
Source: Frost & Sullivan research
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GLOBAL TRENDS SHAPING THE POWER DISTRIBUTION MARKETS
20001990
Evolution of Technology
2010 2020
Systems
Integration
Building
Management
& Control
Building
Automation
Green
Buildings
IT
Convergence
Home
Automation
Energy
Control
Operational
Efficiency
Integrated
Networking
Energy
Management
Enhanced
Management
Intelligent
Buildings
Intelligent
Green
Buildings
Smart
Towns
Low
Energy
Lighting
Micro-
Renewables
Micro-
Generation
Smart
Grids
20001990 2010 2020
Emergence of Smart &
Intelligent Technology
Advanced
Metering
Infrastructure
(AMI)
Smart
Metering
Smart
Cities/Towns
Building
Automation
Virtual
power
plants
Energy
Management
Automated
Meter Reading
(AMR)
Source: Frost & Sullivan
Home Area
Network
(HAN)
IT
Convergence
Boom in
Renewables
Building Control
Building Automation
Smart Buildings
Building Performance
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FUTURE SMART ENERGY OPPORTUNITY- GLOBALLY
Future OpportunitiesAutonomous
distribution network –Micro Grids
Alliances between Utilities, Communication providers,
OEM‘s & distribution
companies
Home Area Network
Smart EnergySmart Energy
New technologies such as superconducing cables, and
high voltage DC (HVDC)
Market moving towards total
solutions
Automation
companies increasingly exploiting
arising opportunities Advances in storage
technologies
Smart Meters
Source: Frost & Sullivan research
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GLOBAL SMART TECHNOLOGY MATURITY CURVE
MaturityDevelopment Growth
Source: Frost & Sullivan
Smart Energy Technology Market: Regional Life Cycle Analysis (World), 2010
Western Europe
North America
Central & Eastern Europe
Middle East
Africa
Asia
Latin America
Tim
e S
cale
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SMART ENERGY – UPCOMING TRENDS & OPPORTUNITIES FOR SAUDI
ARABIA
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POWER T&D SECTOR IN SAUDI ARABIA - MARKET DRIVERS
Grid
InterconnectivityInfrastructure
replacementTechnology
advancements
Industrialization
in Saudi ArabiaPower
Capacity
Augmentation
Energy
efficiency
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POWER T&D SECTOR IN SAUDI ARABIA - THE MARKET CHALLENGES
Insufficient
focus on
Energy
efficiency
Constant
investments to
meet Peaking
demand
Lack of
coordination
between
stakeholders
Technology
adoption
(Lack of)
supporting
Mandates/
Regulations
Financing
(especially for
higher cost
Energy efficient
equipment
Lack of
qualified
manpower
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SUMMARIZING OPPORTUNITIES
Local manufacturing of Transformers
& Switchgear
Design, Installation. Commissioning,
and Maintenance services
Smart grid related services like DRM
Network components (Substation
equipment, Cables, Conductors,
Distribution Components)
Smart meters
Automation Solution Providers &
Network management services
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RECOMMENDATIONS FOR A SUPPORTING INFRASTRUCTURE
Promote National Enterprises
Promote National Enterprises
•There is need to develop localized Saudi manufacturing enterprises which would be able to address most of the equipment requirementfor the power sector in the country
•There is need to develop localized Saudi manufacturing enterprises which would be able to address most of the equipment requirementfor the power sector in the country
Develop the Capabilities
Develop the Capabilities
•Further develop capabilities of local enterprises through focus on training
•Provide an environment that encourages JV’s – especially those focused on technology transfer and development of local talent
•Further develop capabilities of local enterprises through focus on training
•Provide an environment that encourages JV’s – especially those focused on technology transfer and development of local talent
Develop national human talent
Develop national human talent
•Certified Technical education courses are a must to create a national pool of human talent
•Focus should be on developing courses that are recognized by theIndustry, to ensure relevance of training with specific industryrequirements
•Certified Technical education courses are a must to create a national pool of human talent
•Focus should be on developing courses that are recognized by theIndustry, to ensure relevance of training with specific industryrequirements
Attract Investment for Industrial
Equipment Services
Attract Investment for Industrial
Equipment Services
•Saudi Arabia should look at attracting more service providers to set up facilities in the country, in view of the large investments in the sector
•Saudi Arabia should look at attracting more service providers to set up facilities in the country, in view of the large investments in the sector
THANK YOU