SAUDI ELECTRICITY COMPANY (SEC)

GENERATION CONTRACTORS SUMMIT

GENERATION RESTRUCTURE

SAAD M. AL DEKHAYL
Generation Consultant

March 18, 2015

1
CONTENTS

 SAUDI ELECTRICITY COMPANY (SEC) OVERVIEW

 GENERATION ORGANIZATION RESTRUCTURE

2
SAUDI ELECTRICITY COMPANY (SEC) OVERVIEW

3
 SEC OVERVIEW

 Saudi Electricity Company (SEC) was established in the year of 2000 as part of the
Country Energy Industry Restructuring with paid-up capital of SR (33.7) billion.
 SEC is (74%) owned by the Government, (7%) owned by Saudi Aramco, and (19%)
owned by Public.
 SEC current total asset value is SR (277) billion, which makes it the largest in MENA
and one of the largest globally.
 SEC is the only Electric Power Utility in the Kingdom Of Saudi Arabia covers Power
Generation (50 GW), Transmission (c.60,000 Km), and Distribution (c.500,000 Km).
 SEC supply power to 7.1 million customers with annual growth of (6-8%) 500,000
customers/year. 49% Residential, 35% Industrial, 11% Government, 5% others.

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 SEC OVERVIEW

 SEC Peak demand for 2014 was 56,500 MW and Energy Generated was 215 TWh.
 SEC owns partially (7) local Generation Investment Companies (IPPs) and (IWPPs)
with total capacity of (13.5 GW ).
 SEC Manpower Saudization (87%) of 33,000 employees.
 SEC present financial credit rating is (A1 / AA- / AA- ) as awarded by Standard &
Poor’s, Fitch, and Moody’s.

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 SEC MAJOR RESPONSIBILITIES

 Prepare and update system development plan to meet all required demands.
 Generate, transmit, and distribute a reliable power supply to all costumers in
the Kingdom in accordance with Saudi Power Regulations.
 Establish an interconnected network throughout the Kingdom to enable the
optimum means of stability, reliability, and economical operation.
 Import and export power across the Kingdom borders.

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 SEC CURRENT ACTIVITIES

 SEC currently under restructuring process to be ready for Saudi Energy Market.
 SEC implementing Strategic Transformation Program (STP) to improve the work
quality and achieve world class position.
 SEC established an Executive Leadership Development Center (ELDC).
 SEC working on unbundling structure and passably divesting 25% of Generation and
Distribution Companies to International Power Utilities.

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 SEC CURRENT ACTIVITIES

 SEC gets support from local and international specialized entities in the fields of :
 Manpower Development
 R&D
 Nuclear & Renewable Energy
 Efficiency & Economical Operation
 Projects Engineering & Development
 O&M
 Environment Control
 Smart Grid
 System Operation
 Demand Supply Management
 ….etc.
 SEC establishing Wind and Solar Energy projects.
 SEC strategic plan covers participating in generation, transmission, and distribution
projects outside of the kingdom.

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SEC NEW ORGANIZATION

9
 CEO INTERNAL AUDIT

CORE BUSINESS SUPPORT FUNCTIONS SHARED FUNCTIONS KINGDOM FUNCTIONS

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SEC PARTICIPATION IN GENERATION WITH PRIVET SECTOR
CAPACITY SEC INVESTMENT COMPLETION
COMPANY (MW) % DATE

Morjan Electricity Company 2050 50% 2017

(Rabigh)

Dhurama Electricity Company 1729 50% 2013

(Riyadh)

Hajr Electricity Copmany 3927 50% 2014

(Qurayh)

Rabigh Electricity Company 1204 20% 2013

(Rabigh)

Shuaibah (IWPP) 900 8% 2009

Shuqaiq (IWPP) 850 8% 2010

JUBAIL (IWPP) 2745 5% 2010

TOTAL 13,405

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SEC Compared To Other
Company
Country Capacity
KEPCO
72 GW
South Korea
HERE Saudi Electricity Co. (SEC)
63.5 GW*
Saudi Arabia
Tokyo Electric Power
Japan 63 GW
E.ON*
61 GW
United Kingdom
Duck Energy
58 GW
USA
RWE
52 GW
Germany
ESKOM 49 GW
South Africa
VATTENFALL
45 GW
Sweden
Eletrobras 43 GW
Brazil
NTPC Limited 43 GW
India
Include partially owned Generation *

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GENERATION ORGANIZATION RESTRUCTURE

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GENERATION ORGANIZATION RESTRUCTURE

 Generation Business Line currently under restructuring process in order to be more

efficient and more economical.
 Competition between Generation Business Units.
 Power Plants Distribution Criteria
o Installed Capacity.
o Technology Type.
o Operational Costs.
o Fuel Type.
o Average Age.
o Asset Value.
o Retirement Plan.
 Non Geographical Power Plants Distribution.
 Generation Engineering and Project Sector become part of Generation in
order to enable the involvement of Generation in all stages of the Projects.

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15
 SEC GENERATION CURRENT & FUTURE POWER PLANTS UP TO 2025
Generation Business Units
Quriyat Waad Al-shamal
A B C D

Tabarjal Arar

Jouf Rafha
Tabuk Qaissuma
Ras Al Khair
Hail
Duba Safaniyah Berri
Duba 2
Green Duba Ghazlan
Qassim North Juaymah
Wajh Dammam
Qassim Shedgum
Buraidah Qurayyah PP
Madinah PP16
Yanbu Madinah Faras
South PP15
Al Rais Ras Abu Qamees
PP5 Uthmaniyah
PP8
Rabigh PP PP12/PP13 PP4
PP9 PP10/PP14
PP7
Jeddah Makkah

Jeddah South Taif Naiim

Layla
Shoaiba PP Baha
Juba (Wadi Al Dawasir)
Bisha
Capacity < 700 MW
Tihama Asir
MW < Capacity < 2,500 MW 700
Shoqaiq 2
Capacity > 2,500MW Najran
Jizan Sharourah

Future Power Plant

Power Plants In Retirement Plan 16

INTERCONECTED NETWORK

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 SEC GENERATION CURRENT & FUTURE CAPACITY BY TECHNOLOGIES UP TO 2025
60000

50000

steam
40000

combaind
cycle
30000

56568
54168
49368
43506
simple cycle

38706
20000

33306
29206
26965
23303
23193

22424

21821

21821

21821

21821

21821

21821

21821

21821

21821
19181

10000
16541

16410
13789

13018
12789

9692

9262

8875

8484

7069

6335

5364
0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
52524 55394 61534 61804 60719 64389 69402 73811 78258 82324 83754

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 SEC GENERATION CURRENT & FUTURE CAPACITY BY TECHNOLOGIES UP TO 2025
60000

50000

steam
40000

combaind
cycle
30000

56568
54168
49368
43506
simple cycle

38706
20000

33306
29206
26965
23313

23313

23313

23313

23313

23313

23313

23313
23303
23253
23193

23193

21821

21821

21821

21821

21821

21821

21821

21821

21821
19181

10000
16541

13789
12789

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
52524 56163 68377 72099 74340 78440 83840 88640 94502 99302 101702

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 GENERATION STRUCTURE 2015
FUTURES POWER PLANTS UP TO 2025 & GENERATION BUSINESS LINE
Without retirement MW 99311 

MW 24039  MW 24961  MW 24316  MW 25995 

Generation Generation Generation Generation Generation Generation

Unit ( A ) Unit ( B ) Unit ( C ) Unit ( D ) Business Development Engineering & Projects

Planning & & Planning & Planning Planning & Projects

Generation Planning
Technical Support Technical Support Technical Support Technical Support Regulatory Affairs & Planning &Scheduling

& Finance & Finance & Finance & Finance Generation Operational Projects
Business Support Business Support Business Support Business Support Excellence Engineering &Studies

Central Power Southern Power Western Power Eastern Power Fuel Pipe lines Projects
Plants Group
Management Execution Support
Plants Group Plants Group Plants Group

Al-Shuaybah Rabigh Ghazlan Qurayyah & Finance & Finance

Power Plant Power Plant Power Plant Power Plant Business Support Business Support

PP 10&14 PP 12&13 Health , Safety , and

Madinah South PP9 Environment Health , Safety , and
Power Plant Power Plant Power Plant )HSE( Environment
Power Plant )PP13 - 2016( )HSE(
)2018( )PP14 – 2017(

Ras Abu Qamees Ras Al Khair Jeddah South Al-Shoqaiq 2&3

Power Plant Power Plant power Plant Power Plant
)2021( )2020( )2016( )2017(

PP16 Al Rais PP15

Power Plant Power plant Power Plant
)2022( )2023( )2020(

EVP Sector ED Department Division .Non Eng Future PP 20

 Generation Business Unit Structure 2015 & Future Power Plants Up to 2025 ( Without retirement )

Generation
Unit ( A ) MW 24039 
Health, Safety, and
Environment
)HSE(

MW 6,766  MW 10073  MW 3,600  MW 3600 

Finance & Al-Shuaybah Madinah South Ras Abu Qamays

Planning & Central Power Plants
Technical Support Business Support Power Plant Power Plant Power Plant
Group
)2017( )2020(

Budgeting &Finance & Planning PP8

Planning Operation Power plant Operation Operation
Coordination Technical Services
MW 2293

Engineering & PP7

Supply Chain Maintenance Business Support Power plant Maintenance Maintenance
Technical Support Coordination MW 1275

Quality & Qassim &Buraydah

HR & Planning HSE Power plant
& Planning & Planning
Performance Coordination Technical Services Technical Services
Technical Services MW 1928

General Services & Hail North Al-Qassim

Projects Business Support Power plant Business Support Business Support
Coordination SLA Power plant
Coordination 868 MW (2019) 1800
Groups

Naiim Juba
Regulatory Affairs HSE Power plant Power plant HSE HSE
500MW(2018) MW 528

Layla PP5
Power plant Power plant
MW 87
MW (2018) 486

PP4
Power plant
MW (2017) 308

EVP Sector ED Department Division .Non Eng Future PP 21

 CONCLUSIONS

• SEC structure covers international best practices to build up the required foundations
for Word Class Utility.
• SEC implementing Accelerated Strategic Transformation Program (ASTP) to improve
work quality and achieve World Class Position.
• SEC structure includes Business Development Sector as one of the Core Business Lines
in the Company.
• SEC structure includes two new Functions (Independent System Operator (ISO) and
Principle Buyer) as step toward Energy Market.
• Generation Structure considered power plant empowerment in order to improve the
responsibility and accountability at power plant level.

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THANKS

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