JEDDAH: Saudi Arabia's fuel subsidies cost as much as SR50 billion a year, Abdullah Al Shehri, governor of the Electricity and Cogeneration Regulatory Authority (Ecra) said at a conference in Dubai Monday. The figure represents the total value of energy consumed in the country minus the price at which it is sold, including both electricity and gasoline, he said. Peak-time electricity demand will almost triple within 20 years to 120,000 megawatts by 2032 from around 46,000 MW in 2010, Al Shehri said. Al Shehri said electricity probably accounted for around half of the SR50 billion. However, he said the Kingdom was not looking at raising tariffs this year after increasing prices last year for business and industrial consumers. A pilot program last year had successfully directed fuel subsidies toward poorer families, he added. He added that around half the Kingdom's current power capacity uses liquid fuel including distillates, crude oil and heavy fuel oil. The government is exploring alternatives including nuclear power. Saudi Arabia will likely reveal a long-term energy strategy to include nuclear power plants by the end of the year, Al Shehri said. The King Abdullah City for Atomic and Renewable Energy, set up last year, has already carried out feasibility studies, concluded cooperation agreements with other countries and is looking at potential technologies to utilize, he added.
