Minister of Energy Prince Abdulaziz bin Salman said that these reforms reflected the Kingdom’s transformation efforts in all fields, four years after the launch of Vision 2030 under the guidance and leadership of the Custodian of the Two Holy Mosques and the supervision and follow-up of the Crown Prince.
In a press conference to announce a royal decree on organizational, structural and financial reforms in the electricity sector, the minister said: “The Kingdom has moved from the stage of setting up plans to the practical application and implementation in many areas. The numbers and information provided by the Crown Prince about the accomplishments, in his recent speech, confirm that Saudi Arabia is steadily moving on the road to achieving the hopes and aspirations of its leadership and people.”
He noted that the new set of reforms would contribute to achieving sustainability and raising the efficiency of the electricity sector. They will positively affect the sector’s performance, he said, reduce the use of liquid fuels, increase the level of environmental commitment, and enhance the reliability of the electricity transmission network to enable electricity production from renewable energy sources.
The Minister of Energy pointed out that the Ministerial Committee for Restructuring the Electricity Sector would follow up the implementation of investments in priority projects, under the supervision of the Supreme Committee for Energy Mix Affairs.
For its part, the Electricity and Cogeneration Regulatory Authority (ECRA), in coordination with the relevant authorities, will periodically monitor performance indicators for efficiency and service improvement targets, through an approach that is consistent with the best international practices.
“We want to reform this sector and make it more responsive to the future,” the minister underlined.
Prince Abdulaziz bin Salman noted that the target was to achieve competitiveness between all renewable energy projects. He said the role of the Electricity Company in the generation sector would decrease, while competition would be strengthened through renewable energy production and some stations that would depend on gas.
“The majority of electricity production will depend on gas or renewable energy. We have an investment program to produce approximately 50 percent of electricity from renewable energy and the other 50 percent from gas by 2030, with rationalization in the existing stations,” he remarked.