The document discusses opportunities in Saudi Arabia's power transmission and distribution sector given planned rapid economic growth. It notes Saudi Arabia will invest $100 billion in power generation from 2011-2020 and related transmission and distribution investments could total $30 billion from 2011-2016. This will require significant investment in network components, transformers, switchgear, and transmission lines. It also identifies opportunities for local manufacturing, services around smart grid technologies, and developing national human talent to support the infrastructure needs of the expanding sector.

1. THE SAUDI ARABIA POWER
TRANSMISSION & DISTRIBUTION
SECTOR
OPPORTUNITIES & CHANGES
Presented by:
ABHAY BHARGAVA
INDUSTRY MANAGER
ENERGY & POWER SYSTEMS
FROST & SULLIVAN INTERNATIONAL INC.

2. AGENDA
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3. SAUDI ARABIA – RAPID ECONOMIC GROWTH ENVISAGED
Downstream Power Water & General Metals &
Petrochemicals & Sector Wastewater Infrastructure Mining
Plastics
SAUDI ARABIA
Inflation % 6%
Population (Millions) 26+
Unemployment % 10-11 %
Ease of doing business 1 (11)
Percentage of GCC GDP 43%
Percentage of ME GDP 27%
Percentage of GCC Power
T&D investments 70%
Source: Frost & Sullivan research/
IMF/ World Bank data
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4. SAUDI ARABIA – POWER GENERATION GROWTH PLAN
GW
Significant growth in Power Generation
$100 Billion* spend between 2011- Private sector contribution expected
2020 on Power Generation to grow from 7.4% to 17%+
Source: Frost & Sullivan research/
SEC/ KACARE published data
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5. SAUDI ARABIA – POWER GENERATION: INVESTMENT IMPACT
T&D lines: $
8 – 10 Billion
Switchgear:
Transformers: $ 5.5 - 6 Billion
$ 7.5 - 8 Billion
Forecasted cumulative investments till 2016 Source: Frost & Sullivan research/
SEC published data
Number of
4500 – 5000 Km of Cumulative spend
customers expected
380kV lines to be on T&D ~$30
to increase by 26%/
laid by 2016 Billion (2011 -2016)
1.7 Mn
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6. SAUDI ARABIA – PRESENT T&D INFRASTRUCTURE
Source: SEC
Interconnection of regions the next priority in T&D infrastructure development
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7. SAUDI ARABIA – TRANSFORMER LANDSCAPE
2010 KSA Transformer market ~ $ 1 Billion
Only ~70 Million manufactured locally
Local manufacturing focused primarily on
distribution transformers
Requirement - Technical capabilities & skilled
manpower for local manufacturing
Opportunities:
• To develop local skill and expertise Tackle
unemployment issues & contribute to Saudization
• Develop local vendors for supply of components to
transformer manufacturers
Source: Frost & Sullivan research
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8. SAUDI ARABIA – SWITCHGEAR LANDSCAPE
Source: Frost & Sullivan research
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9. SAUDI ARABIA – SUB-STATION EPC LANDSCAPE
Source: Frost & Sullivan research
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10. SAUDI ARABIA – OVERHEAD TRANSMISSION LINES EPC LANDSCAPE
Source: Frost & Sullivan research
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11. GLOBAL TRENDS SHAPING THE POWER DISTRIBUTION MARKETS
1990 2000 2010 2020
Micro- IT
Operational Enhanced
Generation Convergence
Efficiency Management
Building Low
Energy Smart
Automation Energy Smart
Evolution of Management Intelligent Towns
Lighting Grids
Technology Home Intelligent Green
Micro- Buildings
Building Automation Buildings
Renewables
Management Energy
& Control Systems Green Integrated Control
Integration Buildings Networking
Building Building Building Smart
Control Automation Performance Buildings
Automated IT Smart Virtual
Emergence of Building Meter Reading Convergence Metering power
Smart & Automation (AMR) plants
Boom in Smart
Intelligent
Advanced Cities/Towns
Technology Renewables Home Area
Metering
Energy Network
Infrastructure
Management (HAN)
(AMI)
1990 2000 2010 2020
Source: Frost & Sullivan
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12. FUTURE SMART ENERGY OPPORTUNITY- GLOBALLY
Automation
companies
Market moving increasingly exploiting
towards total arising opportunities Advances in storage
solutions technologies
Home Area
Network Alliances between Utilities,
Communication providers,
OEM‘s & distribution
companies
Autonomous
distribution network –
Micro Grids
Future Opportunities
New technologies such as
superconducing cables, and
Smart Meters high voltage DC (HVDC)
Smart Energy
Source: Frost & Sullivan research
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13. GLOBAL SMART TECHNOLOGY MATURITY CURVE
Smart Energy Technology Market:
Regional Life Cycle Analysis (World), 2010
Time Scale
North America
Western Europe
Middle East
Asia Central & Eastern Europe
Africa
Latin America
Development Growth Maturity
Source: Frost & Sullivan
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14. SMART ENERGY – UPCOMING TRENDS & OPPORTUNITIES FOR SAUDI
ARABIA
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15. POWER T&D SECTOR IN SAUDI ARABIA - MARKET DRIVERS
Industrialization
in Saudi Arabia
Power
Capacity
Augmentation
Infrastructure Grid
Energy Technology Interconnectivity
replacement efficiency advancements
<GPS> 15
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16. POWER T&D SECTOR IN SAUDI ARABIA - THE MARKET CHALLENGES
Lack of
coordination Technology Insufficient
Constant between adoption focus on
investments to stakeholders Energy
meet Peaking efficiency
demand
(Lack of)
supporting
Mandates/
Regulations
Lack of
Financing qualified
(especially for manpower
higher cost
Energy efficient
equipment
<GPS> 16
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17. SUMMARIZING OPPORTUNITIES
Network components (Substation
Local manufacturing of Transformers
equipment, Cables, Conductors,
& Switchgear
Distribution Components)
Design, Installation. Commissioning,
Smart meters
and Maintenance services
Automation Solution Providers &
Smart grid related services like DRM
Network management services
<GPS> 17
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18. RECOMMENDATIONS FOR A SUPPORTING INFRASTRUCTURE
•There is need to develop localized Saudi manufacturing enterprises
•There is need to develop localized Saudi manufacturing enterprises
Promote National
Promote National which would be able to address most of the equipment requirement
which would be able to address most of the equipment requirement
Enterprises
Enterprises for the power sector in the country
for the power sector in the country
•Further develop capabilities of local enterprises through focus on
•Further develop capabilities of local enterprises through focus on
Develop the
Develop the training
training
Capabilities
Capabilities •Provide an environment that encourages JV’s – especially those
•Provide an environment that encourages JV’s – especially those
focused on technology transfer and development of local talent
focused on technology transfer and development of local talent
•Certified Technical education courses are a must to create a national
•Certified Technical education courses are a must to create a national
pool of human talent
pool of human talent
Develop national
Develop national
human talent •Focus should be on developing courses that are recognized by the
•Focus should be on developing courses that are recognized by the
human talent Industry, to ensure relevance of training with specific industry
Industry, to ensure relevance of training with specific industry
requirements
requirements
Attract Investment
Attract Investment •Saudi Arabia should look at attracting more service providers to set up
for Industrial •Saudi Arabia should look at attracting more service providers to set up
for Industrial facilities in the country, in view of the large investments in the sector
facilities in the country, in view of the large investments in the sector
Equipment Services
Equipment Services
<GPS> 18
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19. THANK YOU