SEC Begins Operating Power Plant with First Locally-built Turbine Gas

SEC Begins Operating Power Plant with First Locally-built Turbine Gas
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SEC Begins Operating Power Plant with First Locally-built Turbine Gas

SEC Begins Operating Power Plant with First Locally-built Turbine Gas

The Saudi Electricity Company (SEC) has started operating a combined cycle power plant in Waad al-Shamal Mining City, located south of Turaif in the Northern Border Region. The plant includes also a gas turbine, first locally-manufactured by General Electric which helps bringing modern technology into Saudi Arabia.

The plant, costing over SR3.75 billion, has a total capacity of 1,390 megawatt (MW) electricity, of which 50 MW will come from a solar component.

The Company’s CEO Ziyad al-Shiha explained the plant works on natural gas as a main fuel and is part of SEC’s integrated strategy for implementing advanced electric projects that takes into account environmental conditions of the region as well as reduction of thermal emissions with providing fuel while meeting the energy needs of the industrial city.

In a statement issued, Shiha indicated that SEC has invested more than SR3.75 billion in the solar power generating plant with solar powered mirrors. It has also invested in the construction of transmission stations and transmission lines to supply the mining city and its industrial projects with electricity.

The new plant adopts the integrated composite cycle system (ISCCP) and modern gas turbine techniques that reduce carbon emissions and nitrogen oxides to reduce environmental pollution, increase efficiency and produce 50 megawatts of electricity through the concentrated solar power (CSP).

The CEO said that the plant project started implementing in April 2014 after the contracts had been signed after installing, testing, and operating 4 generators and other equipment.

In December 2015, SEC awarded General Electric the $980 million contract for the engineering, construction and provision of gas turbine services for the plant.

In line with the provisions of the deal, one of the gas turbines was assembled fully at the GE Manufacturing Technology Center in Dammam. Shiha said the plant, with one locally manufactured gas turbine, would have a significant contribution to localization of the electric power industry.

He indicated that the plant is a major boost in supporting Saudi Arabia’s focus on renewable energy and creating jobs for Saudis. It was implemented as part of the company’s strategy to be in tune with the Vision 2030. The plant will enhance the Kingdom’s status as the biggest facility in the Middle East and North Africa region for providing electricity.



Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)
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Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)

The Saudi real estate market is currently in a state of cautious anticipation, driven by unprecedented decisions and measures announced by Crown Prince Mohammed bin Salman.

These steps aim to increase the supply of properties and restore balance in the market to address the rising costs of land and rental prices.

Data from the market shows a stagnation in property purchases by citizens, as they await the impact of these measures, hoping they will bring stability to property prices in Riyadh and lower costs.

In March, the Crown Prince directed the implementation of a series of regulatory measures, including lifting restrictions on the development of over 81 square kilometers of land north of Riyadh.

This move is expected to deliver tens of thousands of affordable residential plots annually to citizens, following a significant rise in property prices in Riyadh.

According to Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail, these measures will add between 10,000 and 40,000 plots of land annually in the northern region of Riyadh, ensuring a better balance between supply and demand in the market.

The Crown Prince has already donated 1 billion riyals to the National Developmental Housing Foundation (Sakan), represented by Jood Eskan, to support home ownership for eligible families across Saudi Arabia.

The housing projects funded by this donation are to be completed within 12 months and executed by national companies.

The Crown Prince also ordered monthly progress reports to ensure that all residential units are delivered within one year.

Real estate market experts told Asharq Al-Awsat that current market data reveals a stagnation in property purchases by citizens, as they await the impact of recent policy changes and their potential to restore balance to the market.

Many real estate companies and agencies have observed a decline in sales activity, with property marketers facing difficulties in encouraging buyers who prefer to delay decisions until the effects of Crown Prince Mohammed bin Salman’s directives take shape.

Real estate expert and marketer Abdullah Al-Mousa told Asharq Al-Awsat that the current stagnation in property prices in Riyadh is a direct result of the Crown Prince’s initiatives to increase property supply, which aim to restore price equilibrium following the recent surge in real estate costs.

He views the decline as a positive step toward balancing supply and demand, contributing to a more sustainable and fair market for all stakeholders.

Al-Mousa anticipates that this stagnation will persist until all government directives are fully implemented in the coming months.

He noted that, with plans to increase the property supply, the market could experience gradual recovery in the long term, especially given Riyadh’s continued population and economic growth.

The expert highlighted that several factors may sustain the current stagnation, including high interest rates, which reduce citizens’ purchasing power, the oversupply of properties relative to demand, and global economic fluctuations that could affect investments.

However, he emphasized that Riyadh’s ongoing population growth, improving national economy, rising per capita income, large-scale infrastructure projects like the Riyadh Metro, and continued government support for housing programs are expected to drive the recovery of the real estate market.

Al-Mousa also predicted further improvement in the sector as policies are implemented and market conditions are monitored.