Saudi Arabia Power Report Q3 2012 - New Study Released

Recently published research from Business Monitor International, "Saudi Arabia Power Report Q3 2012", is now available at Fast Market Research
By: Fast Market Research, Inc.
Oct. 5, 2012 - PRLog -- BMI View: Recently-released indicators have reaffirmed BMI's positive outlook on the Saudi Arabian economy, prompting our country risk analysts to hike our forecast for real GDP growth in 2012 from 4.6% to 5.3%. While growth is expected to slow in 2013 as the impact of government spending begins to fade, we remain of the opinion that Saudi Arabia's power sector will remain among the most dynamic in the Gulf Cooperation Council (GCC), owing to both macroeconomic and demographic dynamics. That said, we reiterate once again that the existing regulatory environment creates downside risks for new projects, as it remains highly inadequate, with Saudi Electric Company (SEC) facing a rising financial burden owing to the under-pricing of electricity and rising financial requirements.

Full Report Details at

The Saudi Arabian economy is firing on all cylinders, as relatively high oil prices in the first part of the year, heavy government spending and buoyant consumer confidence continue to drive growth. The positive macroeconomic outlook has been reaffirmed by a host of leading indicators - credit growth, business sentiment and Purchasing Managers Index (PMI) data all point to a robust expansion across the economy. We thus maintain our healthy growth outlook for the country's power sector.

* Saudi Arabia has a very strong track record in the development of power projects. The Saudi government has long demonstrated a substantial commitment to social and economic infrastructure (and to the power sector in particular), and the increased volatility due to the Arab Spring is likely to strengthen these commitments.
* The country is executing an extremely ambitious US$80bn expansion plan for power projects, with the Kingdom's Ninth Development Plan (2010-2014) aiming to raise generating capacity by 20.4 gigawatts (GW) by 2014. Even if BMI adopts a conservative stance, and only 70% of the planned capacity comes online, our forecasts show that the country will be able to meet its commitments, and total installed capacity will reach about 72GW by 2014.
* From this perspective, we note that, although at present Saudi Arabia's electricity mix is dominated by oil and gas, the country has been looking to diversify its electricity mix for quite some time. The country recently announced that it is seeking US$109bn of investment to be channelled into expanding its undeveloped solar industry - aiming to reach an ambitious target of 41GW of installed capacity by 2032.

That said, we note that some downside risks to the business and regulatory environment remain pertinent. Similarly, mixed results in efforts to boost gas exploration could limit the Kingdom's aspirations to free up oil for export. Furthermore, question marks over the long-term viability of the country's economic model - which is unlikely to prove sustainable without greater efforts on the part of the government to diversify the economy away from oil - cast a shadow over the performance of the power sector.

Report Table of Contents:

SWOT Analysis
- Saudi Arabia Power SWOT
Global Industry Overview
Regional Industry Overview
Industry Forecast Scenario
- Saudi Arabia Snapshot (Macro)
- Table: Country Snapshot: Economic and Demographic Data
- Table: Country Snapshot: Power Sector
- Saudi Arabia Forecast Scenario
- Electricity Generation and Power Generating Capacity
- Table: Saudi Arabia Total Electricity Generation - Historical Data And Forecasts, 2008 - 2016
- Table: Saudi Arabia Total Electricity Generation - Long-Term Forecasts, 2013 - 2021
- Table: Saudi Arabia Electricity Generating Capacity - Historical Data And Forecasts, 2008 - 2016
- Table: Saudi Arabia Electricity Generating Capacity - Long-Term Forecasts, 2013 - 2021
- Table: New Capacity - Planned Or In The Pipeline, 2012-2021 (MW)
- Electricity Consumption
- Table: Saudi Arabia Total Electricity Consumption - Historical Data And Forecasts, 2008-2016
- Table: Saudi Arabia Total Electricity Consumption - Long-Term Forecasts, 2013-2021
- Transmission & Distribution, Imports & Exports
- Table: Saudi Arabia Electric Power Transmission And Distribution Losses - Historical Data And Forecasts, 2008-2016
- Table: Saudi Arabia Electric Power Transmission And Distribution Losses - Long-Term Forecasts, 2013-2021
- Table: Saudi Arabia Trade Data And Forecasts, 2008-2016
- Table: Saudi Arabia - Long-Term Trade Forecasts, 2013-2021
Key Policies/Market Structure
- Regulation and Competition
- Key Projects Database
- Table: Major Projects - Transmission Grids And Power Plants
Risk/Reward Ratings
- MEA Regional Power Risk/Reward Ratings
- Table: MEA Power Risk/Reward Ratings (Scores Out Of 100)
- Saudi Arabia Power Risk/Reward Ratings
- Rewards
- Risks
Competitive Landscape
- Saudi Electricity Company (SEC)
Glossary of Terms
- Table: Glossary of Terms
Methodology And Sources
- Industry Forecasts
- Power Industry - Data Methodology
- Generation and Consumption Data
- Electricity Generation Capacity Data
- Power Risk/Reward Ratings Methodology
- Table: Power Risk/Reward Indicators
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.
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