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SPPC CEO Osama bin Abdulwahab Khawandanah
The reason behind separating Saudi Power Procurement Co. (SPPC) from Saudi Electricity Co. (SEC), and transferring its ownership to the state was a part of restructuring the electricity sector to achieve transparency and impartiality, Al Arabiya TV reported, citing CEO Osama bin Abdulwahab Khawandanah.
SPPC is currently planning for energy, capacity, and expected loads for the coming seven years. It is set to offer electricity generation projects for competition and will purchase electrical energy from licensed electricity production firms.
The company purchases both primary and reserve fuels from Saudi Aramco to supply them to production companies in order to be converted into energy.
Accordingly, SPPC will sell this purchased energy to licensed retail and electricity distribution companies in Saudi Arabia to monitor the optimal economic operation of the local electrical system.
SPPC will be the only party responsible for exporting energy and exchanging it with neighboring countries, the CEO highlighted.
He said that all purchases from the primary and reserve fuels are offered in general competitions, as independent producers and other parties are competing for prices. “We pick the best prices.”
The Ministry of Energy is concerned with defining the policy of distributing production between renewable energy and conventional energy, he pointed out, noting that Vision 2030 aims to have 50% of the energy produced from renewables.
According to data compiled by Argaam, the Saudi Cabinet recently issued a resolution approving the carve-out of SPPC from SEC and transferring its ownership to the government.
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