Saudi Arabia is preparing regulations that will allow firms, including Saudi Aramco, to sell power to the Saudi Electricity Company (SEC), expected to be effective by end 2013. Later they will be able to sell directly to customers and compete on price. The kingdom is investing in alternative energy to slow the increase in burning crude in power plants, as it prepares a massive power generation boost. An energy efficiency law, expected in 2013, aims to cut demand by 30%. MEES interviews the Deputy Minister for Electricity and SEC Chairman Saleh Alawaji about these issues.
Q: By 2020 Saudi Arabia aims to have price competition between power suppliers, which are using different government-assigned fuels and so have different production costs – how can they compete on price? (CONTINUED - 1015 WORDS)