Saudi power use keeps growing

Saudi Power Use

The new "Saudi Arabia Power Report" claims that by 2013 Saudi Arabia will account for 16.89 percent of power generation in the Middle East and Africa region (MEA).

BMI's MEA power generation estimate for 2008 is 1,200 terawatt hours (TWh), representing an increase of 6.1 percent over the previous year. "We are forecasting an increase in regional generation to 1,561TWh by 2013, representing a rise of 30.14 percent between 2008 and the end of the period," the report said.

Thermal power generation in MEA in 2008 is estimated at around 1,135Twh, accounting for 94.6 percent of the total electricity supplied in the region, but the region's power sector is currently far from competitive.

91.8 percent increase in electricity generation

Between 2008 and 2018, the report forecast an increase in Saudi electricity generation of 91.8 percent, which is near the top of the range for the MEA region, reports the Saudi Gazette.

The report said: "This equates to 40.9 percent in the 2013-2018 period, up from 36.1 percent in 2008-2013."

Adding that primary energy demand (PED) growth is set to decrease from 25.2 percent in 2008-2013 to 14.8 percent, representing 43.7 percent for the entire forecast period.

Oil still the dominant fuel

But for Saudi Arabia, it is oil that remains the dominant force. The fuel accounted for 59.7 percent of PED, followed by gas at 40.3 percent, and the sectors are both forecast to continue growing.

Regional energy demand is forecast to reach 887.6 million tons of oil equivalent by 2013, representing 20.7 percent growth over the period since 2008. The report noted that Saudi Arabia's 2008 market share of 23.73 percent is set to rise to 24.61 percent by 2013.

The report noted that Saudi Arabia now shares fifth place with South Africa in the updated Power Business Environment rating, largely due to "its considerable market size, low level of energy import dependency and particularly low proportion of renewables use."

The results came as a surprise to many after the recession impacted on Saudi Arabia's business and construction industry, but the rise in power generation is a sign that Saudi Arabia has fared far better than much of the world during the crisis.

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