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Electricity Sector Integration

​​​​​​About the electricity sector

The Kingdom's Electricity Sector has been witnessing, upon the issuance of the Royal Decree No. “16031” dated 21/03/1442H, a major transformation through a chain of regulatory, structural and financial electricity sector reforms, in line with Saudi Vision 2030. The reforms were the result of collective efforts with oversight, support and follow-up from the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector, chaired by His Royal Highness Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic Affairs and Development, Prince Muhammad bin Salman bin Abdul Aziz. Among the entities participating in these efforts were all relative entities of the electricity sector integration ecosystem, the Ministerial Committee to Restructure the Electricity Sector, and the Saudi Electricity Company, both chaired by HRH Minister of Energy Prince Abdulaziz bin Salman.
One of the most notable reforms was the issuance of the new electricity law and the Water and Electricity Regulatory Authority Charter. They aim to achieve sustainability and improve the efficiency and thus the performance of the electricity sector through raising production efficiency, reducing the use of liquid fuel, increasing the level of environmental commitment, enhancing the reliability of the grid in order to produce electricity from renewable energy sources which is central to the optimization of the energy mix, and improving and digitizing the distribution networks to further enhance service reliability. 
Through the Deputyship of Electricity Affairs, the Ministry is responsible for the development and oversight of the implementation of policies to ensure economic growth and community welfare. It also provides necessary electrical safety conditions within the Kingdom's electricity ecosystem and follows up on the implementation of policies and strategies related to electrical energy sustainability in coordination with relative entities. The electricity sector has always striven to create the conditions necessary to enable the sector to carry out its duties, achieve its objectives, deliver affordable power efficiently and reliably, and keep abreast with the ever-growing demand on electricity. The Ministerial Committee to Restructure the Electricity Sector oversees and follows up on the implementation of the sector’s investments in priority projects to enhance reliability and efficiency in the ecosystem. It also monitors the Saudi Electricity Company’s commitment and submits progress reports to the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector.
Since the electricity sector is intrinsically linked and integrated with the sectors of oil and gas, renewable energy and nuclear energy, the Ministry of Energy is putting the finishing touches on an integrated energy sector strategy to align with the new electricity law, the sub-strategies, and executive programs of Saudi Vision 2030.

About the integration of the electricity sector

The Ministry of Energy launched in mid-2017 the electricity sector integration ecosystem to serve as a space for integration and coordination between the various electricity entities. It aims to maximize the  long-term integrated economic value and efficiency of the sector through supporting and coordinating between the various teams in the ecosystem. Representatives from over 23 public- and private-sector entities participate in this ecosystem.
The Ministry, through the ecosystem, currently oversees the implementation of a number of electricity sector initiatives in order to achieve the sector’s objectives and aspirations. These include maximizing the economic benefit of the sector and increasing the GDP, through optimizing the energy mix and raising the efficiency of production and consumption and the environmental commitment. It also seeks to restructure the sector and the Saudi Electricity Company, achieve financial and operational sustainability, increase the participation of the private sector in the electricity sector, especially in investments in renewable energy, localize relative industries and technologies, raise the local content, build national capacities, ensure enhanced electricity services are reliably, efficiently, and comprehensively offered according international best practices, and diversify the Kingdom’s energy mix.​

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