SAUDI ELECTRICITY SUPPLY INDUSTRY FRAMEWORK DURING TRANSITION PERIOD IN THE DEREGULATION PROCESS

Abstract

ABSTRACT : Governments all over the world, in the recent past, are seriously adapting and implementing privatization through restructuring or deregulating the electrical industry. The reasons behind deregulation differ from one country to another. However, the paramount reason is to avoid uncertainty of the future. This uncertainty is due to expected tremendous load demand growth, depletion of natural resources, and negative environment impact. Other reasons could be seeking competition, inefficiency of the existing electrical utilities, avoiding subsidies from government's budget, possibility of getting power cheaper elsewhere. Since deregulation process has already started in Saudi Arabia, management and staffs of Saudi Electricity Company (SEC) are recommended to work together to form an efficient industry framework. The efficient design is required to keep prices down and satisfy the future expected high demands without the need of financial support while keeping in mind environment protection and reliable & safe power supply to customers. This study proposes a framework for SEC which should encourage power system expansion in the right direction. Three main questions arise during the course of this study:- Where will be SEC future generation expansion? What is the future shape of Saudi electricity supply industry? Which is cheaper to transmit electricity or fuel from one province to another province?" Answering any of the above questions which needs gathering of information and forming a complete optimization model and testing it, is by it self a complete thesis. This study started by giving a brief about Saudi Arabia electricity industry. It gives SEC data at year 2005 including some of the current practices and parameters. The ongoing deregulation activities by SEC are also explained. * This is verbally recommended by Prof. Abdullah Al-Shehry (Faculty of King Fahad University of Petroleum & Minerals and V.P. of Saudi Regulatory Authority) The most popular market models are reviewed and more attention is given to the participants as the critical links in any deregulated system. As a result, SEC framework is proposed, including the pricing methods and trading techniques. The complete linear model of the MW LP-Based OPF which is used to know the future generation potential areas in any utility is proposed. The study also explains the available power flow optimizing tools. As well, ELD is considered through the study as the basic optimization tool to dispatch the power system. The model established through the study is applied to the eastern province of Saudi Arabia. Case studies are investigated to know the potential generation areas and finally the results are analyzed. Finally, it is concluded by the summary findings and discussing the directions of possible future researches.