SEC to invest SAR 500 bln in distribution networks upgrade until 2030: CEO

CEO of Saudi Electricity Co. Khaled Al-Gnoon

Saudi Electricity Co. (SEC) plans investments between SAR 400-500 billion to upgrade its power distribution networks and all the necessary enablers until 2030. This includes transmission lines and distribution networks and their sustainability, in addition to improving safety and environment under the entire sector, said CEO Khaled Al-Gnoon.

He told Al-Arabiya TV that the company will also invest SAR 70 billion by 2030 in renewable energy only.

To achieve the energy mix target in 2030 (50% gas and 50% renewable energy), this requires huge investments in transmission lines and networks, transformers stations and distribution networks, and this is what the company is working on, the CEO stated.

He further indicated that SEC's capital expenditures for 2023 amount to SAR 64 billion, which were approved by the company’s board of directors. These expenditures are part of SEC’s investments until 2030. The company’s 2022 spending ranged between SAR 40-45 billion, through which several projects were implemented.

Part of these capital expenditures will be financed through the account approved by the energy system, as a financial solution. The other part will be financed by banks and the company's resources.

Al-Gnoon also stated that SEC is working on a program to tap debt markets, whether by issuing sukuk or global bonds to provide the necessary funding for its programs, expecting this to occur in H2 2023 and in 2024.

He pointed out that the company's restructuring process is still ongoing and the energy sector is working on it. What was really important is the ownership transfer of the principal buyer that plays a fundamental and pivotal role to liberalize business in renewable and non-renewable energy.