Saudi Arabia must invest $115 billion over 23 years
Looks like the rolling power blackouts may not always be limited to California. According to a study conducted by Bank Al-Saudi Al-Frans, Saudi Arabia has to invest $115 billion in new power generation projects over the coming 23 years in order to meet rising demand, reports the Jedda Arab News.
According to the report, Saudi Arabia’s power-generating capacity currently stands at 23,400 megawatts, and will have to increase by 20,000 megawatts by the year 2010. The figures are based on a 5.5 percent annual demand growth in power consumption.
Currently, 48 percent of the kingdom’s power is consumed by the residential sector. The industrial sector uses up 24 percent of available power, and the agriculture sector consumes only 2 percent.
According to a Bank Al-Saudi Al-Frans Saudi official, the growth in power consumption will require the Saudi government to encourage private sector developments in the power sector, which will necessitate significant structural reforms. – (MENA Report)
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