Saudi Arabia Power Report - Business Monitor International - Industry Reports

Saudi Arabia Power Report

Saudi Arabia Power Report - Business Monitor International - Industry Reports
Saudi Arabia Power Report
Published Oct 15, 2016
64 pages — Published Oct 15, 2016
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The outlook for both Saudi Arabia s economy - and by extension our power sector capacity and generation forecasts - remains unchanged this quarter, after we made negative revisions in the Q--- report, as lower oil prices forced the government to up the pace of fiscal consolidation. Our Country Risk (CR) team believes that economic activity in Saudi Arabia has passed its peak and that growth will slow sharply over --------- in line with our view that oil prices are unlikely to move higher until at least ----. ...The lower oil prices and the resulting fiscal pressures will mean that restrained spending is inevitable. Our CR team expects public spending to be cut by --.- in ---- and, along with tightening monetary policy, this has led to another sizeable revision to our forecasts for real GDP growth; we now project real economic growth of just -.- in ---- and -.- in ---- (compared with -.- and -.- in the previous quarter). Notably, changes to our data to reflect a rebasing of GDP growth has increased the weighting of the oil and gas sector in the economy - intensifying the impact of lower oil and gas prices on the Saudi economy. ...We still expect it to attempt to keep pace with surging electricity demand and to diversify the oil-heavy power mix so as to preserve oil for export (rather than burning it domestically). We emphasise that large fiscal financial buffers (high foreign exchange reserves and low debt loads) will mean the government has scope to temper the pace of fiscal consolidation as it moves away from the expansionary policies pursued over the last decade.

...We are maintaining our forecasts for Saudi Arabia s oil-fired generation over our ---year forecast period. We expect that oil-fired generation will grow by an annual average of -.- over our ---year forecast period. ...The plant will also be combined with a -.-GW gas-fired power plant. State-owned Russian nuclear energy company, Rosatom, has offered to construct -- nuclear power plants in Saudi Arabia, after the governments of Russia and Saudi Arabia signed a cooperation agreement on nuclear projects. Rosatom has stated that it will be able to construct the -- power plants over a period of -- years and at a cost of USD---bn. ...We are maintaining our forecasts for non-hydropower renewable electricity generation in Saudi Arabia. We expect that non-hydropower renewable generation will increase to -.--TWh in ----, from an estimated level of -.-TWh in ----.

...In mid-August ----, the Egyptian parliament approved the project for connecting the electricity grid networks of Saudi Arabia and Egypt. The project will be funded by the Kuwaiti Fund for Arab Economic Development to the sum of USD--.-mn. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Saudi Arabia Power Report" Oct 15, 2016. Alacra Store. Jun 23, 2018. <>
Business Monitor International - Industry Reports. (2016). Saudi Arabia Power Report Oct 15, 2016. New York, NY: Alacra Store. Retrieved Jun 23, 2018 from <>
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