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THE KINGDOM OF SAUDI ARABIA

Electricity & Co-Generation Regulatory Authority (ECRA) 

 

country map

Latest News
For recent news on Abu Dhabi, please refer to www.ecra.gov.sa
Key Statistics (2010)

Population

24.8  Million

GDP/Capita

Gross Domestic Product of Saudi Arabia shows an average annual rate growth of 3.4% during the period 1988-2006, going from SAR 450 billion to SAR 815 billion between 1988 and 2006. The GDP reaches about SAR 1753billion in 2008.

The 1992 Saudi Census indicated a population of 12.3 million Saudi and 4.7 million Non-Saudis for a total population of 17 million. The latest census, conducted in 2004, establishes the population of the tow groups as 16.4 million and 6.2 million, respectively, for a total population of 22.6 million. The average annual growth of the total population was 2.5% between the tow censuses. The population in 2008 is estimated to be 24.8 million.

 

 

 

Electricity market structure

Generation fluel

Natural gas

Generation Available 45,773 MW

Electricity Market Size

181.1 TWh/year

Surplus Installed Capacity over Demand

8621 MW

Natural Gas Consumed

24141 Cubic meter/year

Summary
  • Established in 2002
  • ECRA is supervised by a board of directors chaired by the Minister of Water and Electricity, with the Governor of the Authority as deputy chair, six members from senior government officials representing the ministries of Water and Electricity, Finance, Petroleum & Mineral Resources, Commerce & Industry, Economy & Planning, and the Saline Water Conversion Corporation (SWCC); and five members selected on their own merits.
  • Number of Commissioners: 1
  • Number of staff: 119
  • Budget: Is financed through License fees approximately 100%
  • ECRA’s mandate covers the regulation of the electricity and water desalination industry in order to guarantee that the services of the industry are adequately provided to the country at the lowest prices consistent with high quality and reliability.
  • Electricity Law promulgated by Royal Decree no. (M/56) on 22 November 2005.
  • Responsibilities:

The Authority's Charter has charged it with a number of specific responsibilities. Article 3 of the Charter lists sixteen specific responsibilities that fall into four major groupings:

1. Supply Matters: dealing with license issuance, monitoring of license compliance, development of unified utility accounting procedures, coordination of organized infrastructure, and a services expansion plan.

2. Consumer Issues: dealing with tariff assessments and their periodic review, stakeholder protection, investigating and resolving complaints by involved parties, improving sector performance, and in coordination with the Ministry of Water and Electricity, promoting energy conservation measures.

3. Technical Issues: developing technical standards of performance for each electrical activity, monitoring compliance with the standards, ensuring adequacy of the industry's R&D activities, and other relevant technical matters.

4. Organizational and Administrative Tasks: defining public interest, development of regulations for infrastructure expansion, encouraging private sector investments, assessing licensing fees and penalties for non-compliance with licenses and/or the Authorities orders, and issuance of periodic reports by the Authority to the Council of Ministers on cost and tariffs of electricity services.

Industry and Market Structure

Electricity Market Structure:

  • So far, Saudi Arabia has a single vertically integrated electricity company [ the Saudi Electricity Company ( SEC ),that owns most of the Generation , all of theTransmission , and all of Distribution . However , there are a number of other generators and IPPs and IWPPs that are producing power and sell to SEC or supplying isolated loads.
  • Some of the large consumers do have internal generation that is used to feed large portion of their own load (Captive Generation).
  • There are also several entities producing desalinated water and steam.

Natural Gas Market Structure:

  • The Natural Gas is supplied by the national oil company Saudi ARAMCO.
Current Energy Issues
  • ECRA prepared an electricity industry restructuring plan. The major milestones of the plan includes unbundling SEC's corporate structure of a vertically integrated monopoly by organizing the generation and distribution into separate business lines and creating a separate transmission company operating independently of the generation and distribution and retail activities as well as operating on a non-discriminatory basis to provide access to all other industry participants.
  • ECRA will continue to work with stakeholders and relevant government agencies to create an enabling environment that promotes private sector participation and investment in generation through Independent Power or Water and Power Producers (I(W)PPs) Projects
  • ECRA plans to promote and effect the practice and concept of the "Parallel Market" that permits large consumers to obtain their requirements of electricity services directly from the suppliers of their choice on the basis of mutually agreed prices and other commercial terms.
  • ECRA prepared a proposal to change the electricity tariff and submitted it to the Council of Ministers for approval according to the Electricty Law.
  • ECRA is working currently with international consultants to develop a National Renewable Energy Policy ( NREP ).
  • ECRA is working currently with international consultants to prepare a system for Key Performance Indicators( KPIs) for the electricity industry.
Contact

Mailing Address: PO Box 4540; Riyadh 11412; Kingdom of Saudi Arabia.
Tel: (966 1) 1 2019034
Contact person: Dr. Abdullah M. Al-Shehri, Vice-Governor , Regulatory Affairs, Tel.: (966 1) 201-9034)
Internet: http://www.ecra.gov.sa/

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 Annual Report
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