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SAUDI ELECTRICITY COMPANY (SEC) SAUDI ARABIAOrlando, December 2012Power Gen 2012Presented BySAAD M. AL DEKHAYLSEC Consultant

CONTENTS Introduction SEC Organization Structure Distribution Overview Transmission Overview Generation Overview22INTRODUCTIONINTRODUCTIONSaudi Electricity Company (SEC) was established in 2000 as a Saudi Joint Stock Company with paid-up capital of SR (33.7) billion.SEC is (74%) owned by the Government and (7%) owned by Saudi Aramco, amounting to (81%) Government ownedSEC provides power generation, transmission, distribution & customers services, either by itself or by its ssubsidiaries in the Kingdom of Saudi Arabia.3SEC MAJOR ROLES AND RESPONSIBILITIES Provide stable and reliable power supply for all customers in the kingdom.Committed to infrastructure investment in Generation, Transmission & Distribution networks.Establish an interconnectedgrid throughout the Kingdom, to enable the optimum means of stability, reliability and economical operation.Develop a competition in the field of Independent Power Producers (SEC-IPPs).Import and export power across the borders and invest in power projects outside the Kingdom.Perform and support Research & Development in the fields of Performance Improvement, Economical Operation, Environment Protection, Power Conservation, Renewable Power, Services Enhancement,etc.

35SEC ORGANIZATION RESTRUCTURE

SEC ORGANIZATION RESTRUCTURE 5SEC is in the process of unbundling into SEC & Six Fully Owned Subsidiaries, to comply with the objective to reach energy open market in stages, (single buyer, principle buyer and eventually open market). The Subsidiaries will be as follows:Four Generation Companies (GENCOs),One Transmission Company (National Grid), One Distribution Company (DISTCO ),The preparation of the unbundling program started in 2007, and the final set up was approved in 2010.In order to ensure maximum success, the program implemented in stages as follows:Restructured SEC go live: Jan, 1, 2012National Grid go live: Jan, 1, 2012Four GENCOs go live: Jan, 1, 2014DISTCO go live: Jan, 1, 2014SEC GENERATION RESTRUCTURE 6GENCO D(MW)GENCO C(MW)GENCO B(MW)GENCO A(MW)Technology4,0905,5177,2626,612Gas Turbine3,8671,2001,2002,606Combined Cycle4,1925,5385,0564,376Steam Turbine12,14912,25513,51813,594TotalGENCOs at 2014:GENCO D(MW)GENCO C(MW)GENCO B(MW)GENCO A(MW)Technology3,2822,6676,5283,804Gas Turbine3,8673,8001,2003,371Combined Cycle10,63610,3388,65610,376Steam Turbine1778516,80516,38417,551TotalSEC Power plants were allocated to each GENCO to create a Balanced Grouping taking into consideration Technology, Type Of Fuel, Operational Costs, Average Age, Retirement etc:GENCOs By 2021:7DISTRIBUTION OVERVIEW

998DISTRIBUTION NETWORKS:SEC Distribution networks cover the whole country with the voltages below 100 KV. Distribution Networks Growth during 2011:Length of Distribution Networks 26,000 CKM.Distribution Transformers 24,000 Transformers Transformers Capacity 11,000 MVANew Customers 360,000 CustomersNewly Electrified Towns and Villages 266Energy soled 220,000 GWH

Distribution Networks (By the end of 2011):Total Circuit Lengths 410,000 CKM. Total Distribution Transformers 345,000 TransformersTotal Transformers Capacity 160,000 MVATotal No. of customers 6.3 millionsTotal No. of Electrified Towns and Villages , 12,300

109TRANSMISSION OVERVIEW

111110 EXTRA & HIGH VOLTAGE TRANSMISSION NETWORKS (above 100 KV)The interconnection of the four SEC Area Networks (Central - Eastern - Western -Southern), was completed in 2010.The small (9) isolated networks: (Tabouk - Al Qurayyat - Aljouf & Arar - Rafha - Tabarjal - Deba - Alwajh & Al Oula -Wadi Dawassir Sharorah), will be linked to the interconnected networks before 2016, (except Rafha and Sharorah which will remain isolated networks for at least the Plan period 2021). Transmission Networks Growth during 2011:Length of transmission networks 2,200 CKM.Transmission transformers 100 TransformersTransformers capacity 13,000 MVA

Transmission Networks (by end of 2011):Total length of transmission networks 50,000 CKM. Total no. of substations 642 substationsTotal no. of transformers 1,900 TransformersTotal transformers capacity 175,000 MVA

1212SECs transmission network comprises both underground and overhead cables rated from 110kV to 380kVIt has grown at an annual rate of 3.6% from 2000 to 2007

11PLANNED TRANSMISSION INTERCONNECTION PROJECTS (380 KV)Commissioning YearNetworks Interconnection Projects 2013Hail Al Jouf2013Qassim Madinah Stage 22013Interconnection of Qaisumah2014Tabouk Dhibah2013Tabarjal Qurayyat2013Jizan Najran 2017Eastern Central 5th Interconnection 2015Southern region - Wadi Aldawasir2017Madinah Hail2018Central - Western regions HVDC Link2018Tabouk Madinah HVDC Link2016Western Southern 2nd interconnection2015Debha Wajh / Ula2014Yanboa - Umlaj2016Boosting Connection of the western- Southern Region2016Tabouk Eygpt HVDC Link2016Tabouk Tabarjal 2016Al Jouf Tabarjal 2019Boosting Interconnection of Madinah - Hail2019Al Kharj Al Aflaj - Wadi Aldawasir1313The focus will be on:Extending the current networkImproving network efficiencyInterconnecting isolated regionsLinking new generation units to the existing gridThis is a planned capital budget and is not committed expenditure

12PLANNED & EXISTING (380 KV) TRANSMISSION INTERCONNECTION

Interconnected Networks By 20191414The focus will be on:Extending the current networkImproving network efficiencyInterconnecting isolated regionsLinking new generation units to the existing gridThis is a planned capital budget and is not committed expenditure

SEC NETWORKS PEAK LOADS FORECAST (2012 - 2021)NetworksPEAK LOADS FORECAST (MW)2012201320142015201620172018201920202021Central & Eastern29,92532,79035,06537,67539,99042,75544,80546,81548,95051,155Isolated Networks1,230679730459121128135144152160Western14,31515,77017,23018,43019,78021,93523,27524,59525,80527,040Isolated Networks8989721,0471,132Southern4,0584,4505,1805,6656,1406,5206,9007,2557,6107,940Isolated Networks104112119126132139146154164175Total50,53054,77359,37163,48766,16371,47775,26178,96382,68186,470131514GENERATION

1616TOTAL EXISTING GENERATION CAPACITY15Up To the end of Summer 2012TotalSouthWestCentralEastUnits Type13,986-7,110-6,876Steam7,883-9653,5953,323Combined Cycle22,7493,4105,4009,7524,187Gas Turbine21119318-30Diesel44,8323,60313,49413,34914,349SEC Total1,216-602614-SEC (SEC-IPP) 1,750850900--WEC (IWPP)7,23060700-6,470Non-SEC 10,1969102,2026146,470Total (SEC-IPP, WEC& Non-SEC)55,0284,51315,69613,96320,886Grand TotalGeneration Projects Up To 20211618SEC GENERATION PROJECTS (UNDER CONSTRUCTION)17Budget YearProjectCapacity (MW)Fuel TypeCommissioningYear MW 2008Al Jouf PP (GT)56Diesel2012562009Al-Qurayah 2 PP (Steam Phase) (CC) 260-20132602010Al Qurayyat PP Ext. (GT)136Crude2012136PP 10 (ST Phase) (CC) 1,151-20143452015806Rafha PP # 2 (GT) 140Diesel2012140Najran (GT)112Crude2013112Tabouk PP Ext. # 7 (GT) 122Diesel2012122Rabigh PP2 (ST) 2,555HFO20142,5552011Al-Qurayah 2 PP Ext. (CC) 260Gas2013260Total4,7924,792SEC GENERATION PROJECTS (UNDER CONSTRUCTION)Budget YearProjectCapacity (MW)Fuel TypeCommissioningYearMW2011PP 12 (CC) 1,992Gas20141,3102015682Tabuk PP Ext. #8 (GT)129Diesel2013129 Al-Wajh /Al- Ola PP # 2 (GT) 211Diesel2013211 Al-Jubah PP Ext. # 4 (GT) 124Crude2013124Al Qurayyat PP Ext # 2 (GT) 125Crude2013125 Sharorah PP Ext. # 3 (GT) 128Diesel2013128South Jeddah PP Phase #1 (ST) 2,400HFO20161,80020176002012Shuebah (CC)1,238Crude20137902014448Total6,3476,34718SEC GENERATION PROJECTS (UNDER CONTRATUAL PROCESS )Budget YearProjectCapacity (MW)Fuel TypeCommissioningYearMW2012Rafha PP2 Ext (GT)60Crude201460Shuqaiq (ST) 2,400HFO20162,4002013Al Qurayyat PP Ext # 2 (GT) 120Crude201460201560Rabigh Ext. 5&7 ST Phase (CC)1000Crude20161,000 Khufgi Phase # 1 (ST) 2,400HFO20172,400Total5,9805,98019SEC GENERATION PLANNED PROJECTS (STEAM UP TO 2021)Budget YearProjectCapacity (MW)Fuel TypeCommissioningYearMW2014Ras Abo Gumais PP Phase # 12,400HFO20192,400Khufgi - Phase # 21,20020181,20020201,200Ras Abo Gumais PP Phase # 21,2002016Al Rais PP Phase # 12,40020201,20020211,2002015South Jeddah PP Phase #22,40020192,400Total9,6009,60020SEC PLANNED PROJECTS (SIMPLE & COMBINED CYCLE UP TO 2021)Budget YearProjectCapacity (MW)Fuel TypeCommissioningYearMW2014PP 13 (CC) 1,800Gas20181,8002015Sharorah PP Ext. # 4 (GT) 60Crude2018602016PP 14 (CC)1,800Gas20181,800Total3,6603,6602123SEC-IPP PROJECTS (UNDER CONSTRUCTION):OwnerBudget YearProjectCapacity (MW)Fuel TypeCommissioningYearMWSEC-IPP2008Rabigh PP # 1 (ST)1,204HFO20126022013602PP 11 (CC)1,729Gas201261420131,1152011Qurayah PP (CC)3,927Gas20143,927Total6,8606,86022SEC-IPP PROJECTS (UNDER CONTRACTUAL PROCESS):

OwnerBudget YearProjectCapacity (MW)Fuel TypeCommissioningYearMWSEC-IPP2011Deba PP Phase # 1 (CC)1,800Gas20181,800Rabigh PP # 2 (ST)1,800HFO201660020171,2002012Deba PP Phase # 2 (ST)1,80020171,2002018600Total5,4005,4002325NON-SEC PROJECTS (UP TO 2021)CommissioningFuel TypeCapacity (MW)Project(MW) Year 1432013Gas2,484ARAMCO (Mnefa , Kharasaniyah & wasite) (GT)38720141,95420162,4842,484CommissioningFuel TypeCapacity (MW)Project(MW) Year 9002018HFO1,850SWCC Yanbu PP (ST)95020191,10020172,200Jazan (ST)1,10020184,0504,050 Under Contractual Process: Planned: Under Construction:Commissioning Fuel Type Capacity (MW) Project (MW) Year 5002014Gas1,050SWCC Ras Alkhair PP (CC)55020151,0501,0502425GENERATION PROJECTS COMMISSIONING SUMMARY (BY YEAR UP TO 2021) Total2021202020192018201720162015201420132012*MW30,3791,2002,4004,8004,8603,0005,2001,5484,7782,139454SEC12,260---2,4002,400600-3,92717171216SEC-IPP-----------WEC7,584--9502,00011001,954550887143-Non SEC50,2231,2002,4005,7509,2606,5007,7542,0989,5923,9991,670TotalRemaining projects 201226GENERATION PROJECTS SUMMARY (UP TO 2021) Total %TotalPlannedUnder Contractual process Under ConstructionOwner(MW)CC & GTGTCCST61%30,3793,660603,6009,6005,98011,139SEC24%12,260- ---5,4006,860SEC-IPP0%- - - - - - - WEC15%7,5842,4842,484- - 4,0501,050Non-SEC100%50,2236,1442,5443,6009,60015,43019,049TotalGeneration ProjectsConclusions2729EXPECTED GENERATION CAPACITIES (BY 2021) Degradation, Retirement and Forced Outage are not included28Total Expected Installed Capacities Under Construction, Contractual and Planned ProjectsInstalled CapacitiesOwner Up to 2021 2012% MW % MW % MW 71%75,21161%30,37981%44,832SEC 13%13,47624%12,2602%1,216SEC-IPP 2%1,7500%-3%1,750WEC 14%15,22624%12,2605%2,966SEC-IPP + WEC 14%14,81415%7,58413%7,230Non-SEC 100%105,251100%50,223100%55,028Total 31

SEC GENERATION CAPACITIES PROFILE32TOTAL GENERATION CAPACITIES PROFILE27,009 MW54%19,2017 MW38%4,007 MW8%47,832 MW45%30,449 MW29%26,970 MW26%20,823 MW38%11,242MW20%22,963MW42%33

SEC SHARE OF GENERATION CAPACITIES THANK YOU1242721858433341

33,341 MW44 %18,584 MW24 %24,272 MW32 %CAPACITY AT 2021

1CAPACITY AT 2021Gas Turbine24272Combined Cycle18584Steam Turbin333412415581424969 .129461164024586329924155274547700932%32%36%

115231070119355

19,355 MW61 %1,523 MW5 %10,701 MW34 %PROJECTS UP TO 2021

1PROJECTS UP TO 2021GAS TURBINE1523COMBINED SYCLE10701STEAM TURBINE1935531579 .4.82%33.89%61.29%

122749788313986

EXISTING IN 2011EXISTING IN 201222,749MW51 %7,883 MW18 %13,986MW31 %

1EXISTING IN 2011GT22749CC7883ST13986 .

1764111442614364

76,411 MW73 %14,364 MW14 %14,426 MW14 %CAPACITY AT 2021

1CAPACITY AT 2021SEC76411IPP14426IWPP,WEC14364105201 .secippiwpp73%14%14%

14483212168980

44,832 MW81%9,000 MW16 %1,216 MW2 %EXISTING IN 2011EXISTING IN 2012

1EXISTING IN 2011SEC44832IPP1216IWPP,WEC8980 .550282%81%16%ippseciwpp

131579132105384

31,579 MW63 %5,384 MW11 %13,210 MW26 %PROJECTS UP TO 2021

1PROJECTS UP TO 2021SEC31,579IPP13210IWPP,WEC5384secippiwpp .63%26%11%50173