Saudi Arabia’s Electricity Sector Undergoes Largest, Most Comprehensive Transformation On A Global Scale

Saudi Arabia’s Electricity Sector Undergoes Largest, Most Comprehensive Transformation On A Global Scale

A press conference was held on Monday 16th November 2020, organized by Saudi Arabia's Ministry of Energy, to announce sweeping electricity sector reforms that will ensure the long-term health and sustainability of the electricity sector and the achievements of the Kingdom's goal under Vision 2030. These reforms are considered a crucial steppingstone in achieving the Ministry of Energy goals for the electricity sector which are in line with the goals of Vision 2030, and include the following: Transition to the optimal energy mix for electricity production in the Kingdom, with shift to renewable energy and efficient natural gas sources; andIncrease system efficiency and the reduced use of liquid fuels for energy production; andIncrease the sector's Transmission and Distribution network security and reliability to enable effective integration of renewable energy and interconnection with neighboring countries; andGreater environmental compliance to reduce the sector's carbon footprintThe comprehensive reform package of measures includes the establishment of a revenue requirement mechanism for sector service providers and a tariff balancing account to compensate for the difference between the efficient cost to serve and the income from tariffs. His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy, Saudi Arabia, said:"This announcement is a major achievement for