JEDDAH: Saudi Arabia's power needs will triple from a current 40 gigawatts over the next 15 to 20 years, Dietmar Siersdorfer, chief executive officer of Siemens Energy Middle East, said Tuesday. "Saudi Arabia for power generation is the biggest market and they have quite tremendous growth," he noted. An industry report said earlier that Saudi Arabia is expected to increase its electrical power capacity by 49 percent through 2019 to meet growing residential and business energy demands. Power consumption is projected to reach 220 terawatt hours per year by the end of the forecast period with a per capita consumption increase of 9 percent. The development of the power sector has become a top priority within the Kingdom's development plans given rapid population growth and the boom in real estate and other energy intensive industries. Siemens AG, which last week won orders exceeding $1 billion in Saudi Arabia, is eyeing the Kingdom for power-generation projects as population growth spurs electricity demand, Dietmar Siersdorfer, he added. "We will create an industry in Saudi Arabia around this heavy-duty manufacturing equipment," said Siersdorfer, adding the company aimed to create a total of 4,000 jobs with the project, which is scheduled to be operational in about 18 months. While catering to the local market in the beginning, the plant could export to other countries. The company also plans to invest "millions of dollars" in a manufacturing plant that will produce gas turbines in the Kingdom, the first project of its kind in the region, said Siersdorfer. The capacity will be additional output rather than a replacement of production elsewhere, he said. Saudi Arabia's Ras Az Zawr industrial complex, scheduled to start commercial operations in early 2014, will have 12 of Siemens's gas turbines, 10 heat-recovery steam generators and five steam turbines. Siemens is also discussing the possibility of building gasification plants in the Kingdom that would use crude or waste from refineries, Siersdorfer further said. In line with this development, the 14th Saudi International Electrical Engineering, Power Generation and Distribution Exhibition will take place in Riyadh on May 29-June 1 at the Riyadh Convention and Exhibitions Center.
