Umair Gaines
Saudi Arabia's electricity sector has evolved significantly over the years, with the first introduction of electricity in 1918 when the Grand Mosque became the second location to be electrified, using special generators. Since then, the kingdom has witnessed an increasing demand for electricity, driven by population and economic growth. In 1932, the government enacted the Electricity Concession Law, marking the official start of investments in the electricity sector. The Saudi Electricity Company, formed in 2000, plays a pivotal role in managing the country's electricity production and distribution. With a sharp rise in electricity consumption during the 1990-2010 period, Saudi Arabia is now the fastest-growing electricity consumer in the Middle East. The kingdom is actively addressing the challenges posed by its reliance on fossil fuels and is working towards diversifying its energy mix, with a focus on renewable sources and energy efficiency initiatives.
| Characteristics | Values |
|---|---|
| Year electricity was first introduced | 1918 |
| Location where electricity was first introduced | The Grand Mosque |
| First city to have streets and homes illuminated by electricity | Makkah al-Mukarramah |
| Year the Electricity Concession Law was enacted | 1932 |
| Year the Saudi Electricity Company was established | 2000 |
| Year with the sharpest increase in electricity consumption | 2001 |
| World's largest consumer of primary energy in 2005 | 15th |
| Percentage of energy that was petroleum-based in 2005 | 60% |
| Planned increase in electricity generation capacity between 2023 and 2028 | 83 GW to 110 GW |
| Planned increase in electricity generation capacity by 2032 | 120 GW |
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What You'll Learn
Electricity generation began in 1907
The history of electricity in Saudi Arabia can be traced back to 1907, when the first electricity was produced in the Kingdom. However, it wasn't until 1918 that the Grand Mosque became the second location to have electricity, using special generators belonging to the Administration of Grand Mosque. Makkah al-Mukarramah was the first city in the Kingdom to have its streets and homes illuminated by electricity, with surplus power used for lighting, ice factories, and mechanized grain mills. This marked the true beginning of electricity's presence in Saudi Arabia.
In the early days, electricity generation in Saudi Arabia was left to small, local companies, which sold power at varying rates according to local costs. The introduction of electricity brought about significant changes, with generators playing a crucial role in powering key locations.
The government formed a committee to study electricity generation in the Kingdom, and in December 1930, they met in the presence of the Viceroy of Hejaz, Prince Faisal Bin Abdulaziz Al Saud. The project aimed for the state to cover two-thirds of the cost, with the remaining third offered as shares to citizens.
In 1932, the government enacted the Electricity Concession Law, marking the official start of investments in the electricity sector. This led to the granting of concessions to businessmen in several cities, with the first concession awarded in Jeddah City. The following decades saw further developments, with concessions granted in Taif and the establishment of joint-stock electricity companies in Jazan and al-Madinah al-Munawwarah.
By 1948, the Founding King Abdulaziz Bin Abdulrahman Al Saud ordered the illumination of Riyadh with electricity, showcasing the Kingdom's commitment to expanding access to electricity. The Eastern Province also witnessed the establishment of the Electric Power Company for Dhahran in 1950, responsible for generating and distributing electricity to Dhahran, Dammam, and Khobar.
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The Grand Mosque was illuminated in 1918
The Grand Mosque, also known as the Sacred Mosque or the Great Mosque of Mecca, is considered the most significant mosque in Islam. It is located in the center of Makkah al-Mukarramah, in the western region of Saudi Arabia. The mosque has a rich history and has undergone various renovations and expansions over the centuries.
In 1918, The Grand Mosque became the second location in Saudi Arabia to be illuminated by electricity, marking a significant milestone in the introduction of electricity into the Kingdom. Special generators belonging to the Administration of the Grand Mosque, located in the Ajyad area, were used to power the mosque. This event highlighted the advancement and expansion of electricity usage in the country.
Prior to the introduction of electricity, the Grand Mosque was illuminated through various means. Mohammed Bin Ahmad al-Mansouri is noted as the first person to light lamps in the mosque by hanging lanterns between wooden pillars. Over time, different rulers contributed to the illumination of the mosque, including Harun al-Wathiq bi-llah, who ordered the installation of tall columns and large chandeliers to enhance lighting.
The use of electricity in the Grand Mosque had a significant impact on the surrounding area as well. Makkah al-Mukarramah, being the first city in the Kingdom to have its streets and homes illuminated by electricity, utilized surplus electricity from power plants for lighting and other purposes. This development marked the true beginning of electricity's presence and distribution in Saudi Arabia.
The illumination of the Grand Mosque in 1918 was a pivotal moment in the history of electricity in Saudi Arabia. It not only enhanced the lighting of this significant religious site but also symbolized the country's progress and modernization in terms of energy and infrastructure. The event paved the way for further expansion and regulation of the electricity sector, leading to the establishment of various companies and initiatives to meet the growing demand for electricity in the Kingdom.
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The Electricity Concession Law was enacted in 1932
The history of electricity in Saudi Arabia dates back to the early 20th century, with the first electricity production in the Kingdom recorded in 1907. However, a significant milestone in the country's electrification journey was the enactment of the Electricity Concession Law in 1932.
The Electricity Concession Law of 1932 marked a pivotal moment in the development of Saudi Arabia's electricity sector. This law signalled the government's intention to encourage private investment in electricity infrastructure. By enacting this legislation, the government opened the door for businessmen to play a role in the electrification of the nation. The positive response from the business community led to the government granting concessions in several cities.
The first concession was awarded to Muhammad Abdullah Ali Rida and Ibrahim Shakir, who were granted the rights to supply electricity to Jeddah City. This initial concession set a precedent for further expansion, with similar concessions being granted in subsequent years. In 1946, Ibrahim al-Jufali and his brothers received a concession for Taif, and in 1947, a joint-stock company was established in Jazan with the authorisation to provide electricity and water to the town.
The Electricity Concession Law not only facilitated the entry of private investment into the electricity sector but also contributed to the geographical spread of electrification across the Kingdom. It empowered local businessmen to take the lead in bringing electricity to their respective regions, fostering a sense of ownership and entrepreneurship in the process. This decentralised approach to electricity development likely contributed to the rapid increase in electricity production and accessibility witnessed by the Kingdom in subsequent decades.
The enactment of the Electricity Concession Law in 1932 was a foundational step in Saudi Arabia's journey towards modernising its energy infrastructure. It demonstrated the government's recognition of the importance of electricity and its commitment to fostering public-private partnerships for the benefit of its citizens. This law laid the groundwork for the subsequent expansion and improvements in the Kingdom's electricity sector, ultimately enhancing the quality of life and supporting the country's economic growth.
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The Saudi Electricity Company was established in 2000
The history of electricity in Saudi Arabia can be traced back to 1907, when the first electricity was produced in the Kingdom. However, it wasn't until 1932 that the government enacted the Electricity Concession Law, marking the official start of investments in the electricity sector. Over the following decades, the country witnessed the establishment of a legislative and regulatory framework for the electricity sector, with specialised companies being created to produce and transmit electricity.
In 2000, the Saudi Electricity Company (SEC) was established to regulate the electricity sector and merge the various regional electricity companies into a single joint-stock company. This decision was made by the Council of Ministers on November 30, 1998, with the aim of restructuring the electricity sector and addressing the urgent need to regulate it due to the expansion of electricity usage. The SEC enjoys a near monopoly on the generation, transmission, and distribution of electric power in Saudi Arabia through its 45 power generation plants.
The formation of the SEC in 2000 was a significant milestone in the evolution of Saudi Arabia's electricity sector. By merging the regional electricity companies, the SEC streamlined the generation, transmission, and distribution of electricity across the country. This centralised approach improved efficiency and enabled better coordination in meeting the growing demand for electricity.
The impact of the SEC's establishment was evident in the significant increase in electricity production and supply. Between 2000 and 2018, electricity production in the Kingdom jumped from the initial 20 KW in 1907 to around 290,000,000,00 KW. Additionally, the SEC successfully provided electricity to over 13,000 cities, villages, and hamlets spread across Saudi Arabia, ensuring a more widespread access to electricity for its citizens.
Today, the SEC continues to play a crucial role in Saudi Arabia's energy sector. Ranked as the 5th largest company in the Kingdom and 578th worldwide by Forbes in 2019, the SEC's total annual sales reached $17.1 billion. As the country's primary electric energy company, the SEC is committed to embracing innovation and technology to enhance its operations and meet the ever-increasing demand for electricity in Saudi Arabia.
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Saudi Arabia aims to generate 50% of electricity from renewable sources by 2030
The history of electricity in Saudi Arabia can be traced back to 1918 when the Grand Mosque became the second location to have electricity, after Makkah al-Mukarramah, the first city in the Kingdom to have its streets and homes illuminated. In 1932, the government enacted the Electricity Concession Law, marking the official start of investments in the electricity sector. Over the years, various developments and initiatives have been undertaken to regulate and expand the electricity sector in the country.
Today, Saudi Arabia is the fastest-growing electricity consumer in the Middle East, particularly of transportation fuels. To accommodate the rising demand and address the urgent need for energy conservation, Saudi Arabia has set ambitious goals for its energy sector.
Saudi Arabia aims to generate 50% of its electricity from renewable sources by 2030. This target is part of the country's Vision 2030 plan to reduce dependence on oil revenues and diversify its economy. By achieving this goal, Saudi Arabia intends to not only meet its power needs but also export renewable energy globally. The country is focusing on solar and wind energy, with expected capacities of 58.7 GW and 40 GW, respectively.
To achieve this target, Saudi Arabia is partnering with leading Chinese renewable energy companies, gaining access to advanced technology and financing options. Additionally, the country is working on various projects, such as a green hydrogen production project in the NEOM smart-city development and initiatives by Saudi Aramco to capture and store carbon. The Saudi Ministry of Energy is also encouraging the participation of the private sector and updating regulations for renewable energy projects.
The transition towards renewable energy in Saudi Arabia has significant geopolitical implications, challenging the United States' dominance in the region and potentially altering global supply chains in the clean energy sector. Saudi Arabia aims to become a key player in renewable technology exports, making the Gulf region a central hub for renewable energy components.
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Frequently asked questions
The first electricity produced in Saudi Arabia was in 1907, with the first city to have its streets and homes illuminated being Makkah al-Mukarramah.
In 1918, the Grand Mosque became the second location to have electricity, using special generators belonging to the Administration of the Grand Mosque.
The Electricity Concession Law was enacted in 1932, marking the official start of investments in the electricity sector.
The Saudi Electricity Company was established on April 5, 2000, after a decision to restructure the electricity sector was made in 1998.
Saudi Arabia is the fastest-growing electricity consumer in the Middle East, with a sharp increase in electricity consumption during the 1990-2010 period due to rapid economic development. The kingdom aims to increase its electricity generation capacity from 83 gigawatts in 2023 to 110 gigawatts by 2028.
