Saudi Electricity Company (SEC) is planning a SR472bn ($126bn) capital expenditure programme over the next six years to enhance the kingdom’s power generation, transmission and distribution infrastructure and to meet future demand growth.

The largest component of this spending drive is the transmission sector, with a planned investment requirement of SR351bn. This is split into five main elements:

• SR197bn for extra-high-voltage substations
• SR110bn for extra-high-voltage and high-voltage overhead lines
• SR17bn of high-voltage substations
• SR12.2bn of underground extra-high-voltage cables
• SR14.8bn of high-voltage underground cables

A total of SR116bn is envisaged for the distribution sector, comprised of SR98.2bn of underground cabling networks, SR15.9bn of overhead lines and SR1.5bn for control and command centres.

In total, the spending plan comprises:

• 168 380kV substations
• 292 high-voltage transmission substations
• 1,316 power transformers
• 2,525 380kV gas-insulated switchgear (GIS) breakers
• 3,065 high-voltage GIS breakers
• 48,210 kilometres of extra-high-voltage and high-voltage overhead lines
• 5,305 kilometres of extra-high-voltage and high-voltage underground cables

Just SR6.2bn is dedicated to power generation projects. This comparatively low amount is due to most new electricity production plants now tendered by the Saudi Power Procurement Company (SPPC) under the kingdom’s public-private partnership (PPP) framework.

SEC has been expanding and reinforcing its transmission and distribution networks in line with increasing demand and a growing population. A key objective is the extension of power connectivity to more remote areas of the kingdom and to new residential areas in its main cities.

Details of the capital expenditure programme were outlined by SEC at the Future Projects Forum in Riyadh on 20 May.

MEED's April 2024 special report on Saudi Arabia includes:

> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects