Saudi power sector restructure to generate $4bn

Restructuring Saudi Arabia’s power generation sector coupled with price reforms can deliver annual aggregate economic gains of more than $3bn (SR15bn)

KAPSARC is dedicated to research into energy economics, policy, technology and the environment, across all types of energy.
KAPSARC is dedicated to research into energy economics, policy, technology and the environment, across all types of energy.

Restructuring Saudi Arabia’s power generation sector  and price reforms can deliver annual aggregate economic gains of more than $4bn (SR15bn), according to a study published by the King Abdullah Petroleum Studies and Research Center (KAPSARC).The study called “Restructuring Saudi Arabia’s Power Generation Sector: Model-Based Insights” has developed a model to simulate the introduction of private generation companies in the power sector along with reforming fuel prices to an energy equivalent of $3/MMBtu (British Thermal Units).The paper, authored by KAPSARC’s researchers in collaboration with the Principal Buyers Department of Saudi Electricity Company, expects the surplus to result from fuel subsidy savings by the Saudi government due to the increased efficiency of consumption and thereby competitive generation, according to Saudi Gazette. KAPSARC is dedicated to research into energy economics, policy, technology and the environment. 

The research centre is focused on finding solutions for the most effective and productive use of energy, creating added value that contributes to the welfare of both energy exporting and consuming societies.

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