Market Trends of Saudi Arabia Smart Grid Network Industry
This section covers the major market trends shaping the Saudi Arabia Smart Grid Network Market according to our research experts:
Advanced Metering Infrastructure to Witness a Significant Growth
- Advanced metering infrastructure (AMI) or smart metering is an integrated system of smart meters, communications networks, and data management systems that are fundamental in the smart grid and are expected to show considerable growth.
- In 2019, Saudi Electricity Co awarded a project to install 10 million smart meters across Saudi Arabia as part of a broader plan to improve power distribution with an investment of USD 2.5 billion.
- According to a report in 2018, Middle East & North Africa Region Forecast to Invest USD 17.6 Billion in Smart Grid Infrastructure by 2027, which will drive the smart meter market. Saudi Arabia is expected to hold a significant share in that investment.
- Saudi Arabia has witnessed significant growth in electricity production in 2018, which is expected to grow in the forecast period. With 333 TWh in 2014 to 383 TWh in 2018, electricity production with new power plants and new grid network has increased the demand for smart grid and smart meters as well.
- With the increasing efforts to modernize the electricity grid and reduce transmission and distribution losses, Saudi Arabia is investing in advance metering infrastructure. This, in turn, is expected to drive the AMI market during the forecast period.
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Upcoming Projects and Renewable Energy Driving the Market
- In 2019, according to Saudi Electricity Company, electricity consumption rose to more than 128 TWh in the residential sector, whereas net use recorded a drop from 283 TWh in 2018 to 279 TWh in 2019. A surge in acceptance of smart electricity in the residential sector is further expected with this.
- By 2018, a total of 78 new transmission substations and 15 reinforced existing transmission substations with a transformation capacity of 45,351 MVA that were connected to the network via overhead lines and ground cables with a length of 4,474 km-circular.
- The 300 MW Sakaka Solar Power Plant Project was signed on February 14, 2018, with the project company Aqua Power Saudi Arabia, which is expected to be completed by the end of 2020 and is expected to drive the grid network significantly.
- Saudi Arabia is planning to deploy 40 GW of solar power capacity and 20 GW of wind and other sources by 2030. Such large-scale deployment is expected to drive the smart grid market in the forecast period.
- Therefore, the above mentioned projects coupled with ambitious renewable goals, Saudi Arabia is expected to witness considerable growth in the smart grid market.
