Saudi Arabia has a robust and extensive transmission network that forms the backbone of its electricity infrastructure. It plays a critical role in ensuring reliable power supply and supporting the nation’s economic growth. Saudi Arabia has been actively pursuing electricity transmission ties with neighbouring countries, fostering regional cooperation and bolstering energy security. With the increasing global focus on transitioning to low-carbon economies, the country has been looking to reduce its carbon emissions by decreasing dependence on fossil fuels. The oil-rich country has set a target of generating half of its electricity over the next decade from clean energy sources, which is in line with the kingdom’s Vision 2030. It is estimated that the country’s installed capacity will increase from over 83 GW in 2022 to ~118 GW with a mix of 50 per cent natural gas and 50 per cent renewable energy sources (RES) by 2030.  The Ministry of Energy’s spending on power and RES projects is expected to reach USD293 billion by 2030.

To fully reap the benefits of the upcoming capacity, optimise operating costs and increase regional power exchange, the state-owned electric company Saudi Electricity Company (SEC), through its wholly owned transmission subsidiary, National Grid S.A, continues to pursue opportunities to connect its grid with those of other countries in the region. Currently, it is working on cross-border interconnectors with Iraq, India, Jordan and Egypt. Saudi Arabia is also embracing the energy transition and as it advances towards a more sustainable future, the integration of smart grid technologies becomes increasingly crucial. Smart grid solutions, including smart meters, demand response systems and energy storage, are poised to enhance the efficiency, flexibility and resilience of Saudi Arabia’s transmission network.

Key growth drivers for transmission infrastructure

Saudi Arabia plans a complete overhaul of its generation mix. It proposes to transform its existing installed generation capacity of 83.4 GW (as of December 2022), which is nearly 99.5 per cent based on thermal sources comprising natural gas, crude oil, diesel and heavy fuel oil.  According to the National Renewable Energy Program (NREP), the 2030 RES target is 58.7 GW [40 GW photovoltaic (PV), 16 GW wind and 2.7 GW concentrated solar power (CSP)]. The planned capacity will cumulatively add more than 35 renewable energy parks across the country. NREP will lead to the creation of new RES technologies and support the development of the sector through harnessing private sector investment and encouraging public-private partnerships (PPPs). In addition to RES capacity, the country has also planned addition of approximately 5,000 MW of conventional capacity and 2,800 MW of nuclear capacity by 2030.

Another key driver is the expected growth in the country’s electricity demand from 2,92,771 GWh in 2022 to 3,65,400 GWh by 2030. To meet this demand, the country is focusing on harnessing its RES potential.

Existing transmission infrastructure and future plans

As of 2022, Saudi Arabia’s transmission network comprised about 92,999 circuit km of line length at the 132 kV to 380 kV voltage levels. Between 2018 and 2022, Saudi Arabia’s transmission network grew at a compound annual growth rate (CAGR) of 2.7 per cent with net additions of close to 9,317 km. The country’s transmission network saw significant growth at the 230 kV and 380 kV levels, which increased from just 37,783 km in 2018 to 49,649 km by 2022. The transformer capacity stood at 4,74,262 MVA as of 2022, recording a CAGR of 3.3 per cent compared to 4,17,203 MVA in 2018.

National Grid plans to undertake significant expansion of its transmission network to minimise congestion, interconnect isolated regions, and connect new power plants to the grid. The company and its parent SEC are working with the Ministry of Energy’s Renewable Energy Project Development Bureau to tie RES plants into the grid. Further, it has been focusing on installing hybrid technology for its existing and upcoming substations, making it the first country in the Middle East to adopt the hybrid gas-insulated switchgear (GIS) technology. National Grid also plans to implement grid links to strengthen regional cross-border interconnections as well as construct new high-capacity lines connecting to neighbouring Gulf countries. Over the next three years (2023-25), National Grid plans to add over 3,600 km to Saudi Arabia’s grid at an investment of about SAR5.4 billion.

Saudi Arabia’s role in regional energy integration

Saudi Arabia is playing a vital role in building a robust and interconnected regional energy network through its active engagement in developing electricity transmission ties. These interconnections not only enhance energy security but also promote the efficient utilisation of resources, facilitate RES integration, and enable seamless electricity exchange across borders.

Saudi Arabia is one of the six Gulf Cooperation Council (GCC) countries [the others being Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates (UAE)] whose power grids have been interconnected since 2012 and is managed by the Gulf Cooperation Council Interconnection Authority (GCCIA). Efforts are ongoing to strengthen the GCC grid as well as expand it to other neighbouring countries. Recently in March 2023, GCCIA awarded a contract to upgrade the Al-Fadhili high voltage direct current (HVDC) converter station in Saudi Arabia to enable the exchange of up to 1,800 MW among GCC countries.

The following are some of Saudi Arabia’s interconnectors under various stages of planning and development.

Saudi Arabia–Iraq Interconnector: This interconnector aims to facilitate electricity exchange and resource sharing besides strengthening economic ties between the two countries and promoting regional stability. The proposed 1 GW interconnector involves the construction of a 400 kV, 435-km link between the northern Saudi town of Arar and the central Iraqi city of Yusufiya by 2024.

Saudi Arabia–Egypt Link: This 3 GW project, being jointly implemented by National Grid and Egyptian Electricity Transmission (EETC), aims to establish an HVDC link between the two countries. Earlier in 2023, Japan Bank for International Cooperation (JBIC) extended a loan of USD207 million to SEC for the Saudi side of the project. The project entails the construction of three converter stations—two in Tabuk and Medina in Saudi Arabia and one in Badr in Egypt. Overhead HVDC lines spanning 1,300 km (~965 km in Saudi Arabia and 335 km in Egypt) and a 20-km submarine cable crossing the Gulf of Aqaba will connect the converter stations. Two switching stations on the shores of the Gulf of Aqaba on both sides will also be constructed to connect the overhead lines and subsea cable. The project will become operational in a phased manner with the first phase expected to be completed by June 2025 enabling the transfer of 1,500 MW and the second phase by November 2025.

Saudi Arabia–Jordan Interconnection: The interconnection aims to enable sharing of surplus electricity and promote the use of RES in both countries. National Grid is working with Jordan’s state-owned National Electric Power Company (NEPCO) on the project. Initially, it will enable the exchange of around 500 MW between the two countries, with the possibility to increase it to 1,000 MW in the future. It is part of efforts to establish a joint Arab electricity market that interconnects Arab Gulf countries such as Jordan, Egypt, Palestine, Syria and Iraq. It entails the construction of a 164-km, 400 kV overhead transmission line between Qurayyat (Saudi Arabia) and East Amman (Jordan), along with a 400 kV GIS substation in Saudi Arabia by 2025.

Saudi Arabia–Oman Interconnection: The project aims to increase the net transfer capacity to Oman from 400 MW to approximately 1,600 MW. It entails the construction of a 700-km, 400 kV HVDC link between the Sultanate of Oman at Ibri, directly to Salwa in Saudi Arabia. If approved, it will be the second interconnection between the two countries. The first, which has been in operation since 2012, supports transfers of up to 400 MW and can carry up to 800 MW in emergencies. It links Oman’s Main Interconnected System (MIS) with the power systems of the Gulf Cooperation Council Interconnection Authority (GCCIA) via Abu Dhabi. In 2022, GCCIA, which operates the transmission system that connects the grids of the GCC member states, announced that it is conducting a detailed study on the project.

Saudi Arabia–India Partnership: Saudi Arabia and India are exploring avenues for an electricity interconnection project. The initiative seeks to establish an undersea transmission link, enabling the exchange of power, enhancing grid stability, and supporting the economic growth and sustainability goals of both nations. This is part of India’s One Sun, One World, One Grid initiative, which envisions creating interconnected green grids to enable nations to meet the targets of the Paris Agreement to prevent the adverse effects of climate change.

Conclusion

Saudi Arabia is looking to fully reap the benefits of its upcoming generation capacity by developing grid infrastructure for power evacuation and by establishing interconnectors with neighbouring countries.