Challenging future for Saudi power

The power sector in Saudi Arabia is considered to be stable even though the price of oil has fallen. There is potential for new projects in the region because the likely demand for electricity over 20 years is immense. The Shoaiba project will involve the private sector. Falling oil prices, increased competition from IPP operators and the economic crisis in South-East Asia all make Saudi Arabia an attractive location for new projects. However, the legal system, current electricity tariffs, repayment plans and the structure of the industry all pose potential problems.
This article is the second of a two-part series jointly written by Arab National Bank and Taylor-DeJongh that examines the ongoing electricity requirements of the Kingdom of Saudi Arabia. Below [...]