The cost analysis of electric power generation in Saudi Arabia

Abstract

ABSTRACTElectricity is mainly used for cooling, desalination, industrial, and domestic needs in Saudi Arabia. Natural gas, diesel oil, crude oil, and heavy fuel oil are used for electricity generation in the Kingdom. More than 70% of Saudi’s electricity is consumed for air conditioning and cooling, and the summer demand is about twice the winter demand. Today, 65% of world’s electricity is produced by steam turbine generators by burning fossil fuels, whereas 100% of Saudi’s electricity is generated from fossil energy sources. Electricity & Cogeneration Regulatory Authority (ECRA) regulates the electricity and water desalination industry in Saudi Arabia. The country has 30 desalination plants and drinking water demand increases year after year. More than 60% of the water consumed in households is provided from desalinated sea water, and the rest comes from the groundwater aquifers. Desalinated water consumption increases approximately 14% per year. Desalination is a very costly process and is not sustainable. The consumption of energy is nearly 20% of total energy consumption in Saudi Arabia. Cost analysis, especially electricity and water sectors to focus on, indicates the need to encourage the optimum use of fossil fuels. Against the possibility of increasing oil prices and using of energy diversity requirement, Saudi Arabia must generate electricity from coal and renewable energy sources in the long term. Another remedy is the use of diversifying the power mix of renewable energy and nuclear energy. The use of coal in electricity production will result in environmental concerns. In situ, with underground gas formed by burning coal generated electricity by running a gas turbine. The electricity losses may occur during the transmission and distribution from generators to consumers.