Khalid Hamad Al Gnoon

SEC is playing a crucial role in connecting new energy sources to the Saudi grid, reinforcing the transmission network, and facilitating the effective penetration of renewable energy to support de-carbonization.

How have the company’s achievements evolved over the years?

In constant pursuit of excellence, SEC is committed through its vision, mission, objectives, and strategies to support the strategic goals of the Vision 2030, and the Integrated Energy Strategy. SEC plays a pivotal and integral role in the Kingdom’s economic development, and benefits from the strong visionary government leadership provided by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and HRH Crown Prince Mohammed bin Salman bin Abdulaziz, with unwavering support and guidance from HRH Prince Abdulaziz bin Salman, the Minister of Energy. Our board of directors, the executive management team, and the entire staff of SEC are working tirelessly to make the Kingdom’s Vision 2030 a reality. To achieve our aims, SEC has aligned its corporate strategy and investment program with the priorities of the National Plan for the Kingdom’s electricity sector. The main objective is to level up the quality and reliability of the electricity service provided to end consumers, in addition to achieving the sustainability objectives outlined in Vision 2030.

Can you elaborate on the company’s role into achieving the goals of Vision 2030, and how is SEC aligning its strategies with country energy transition goals?

SEC is playing a major role in achieving the country’s energy mix, which will shift from heavy reliance on crude oil and heavy fuel oil to natural gas and renewable energy. The Ministry of Energy aspires to lift renewable energy installed capacity to 50% of total installed capacity in 2030, and as the main grid owner and operator, SEC is mandated to connect the new sources of energy to the grid. The reinforcement and expansion of the transmission network will allow the effective penetration of renewable energy paving the way for de-carbonization. One of the main strategic objectives of SEC’s strategy is maintaining high security of supply and enhance system reliability and developing a dedicated program for renewable energy integration projects to contribute in achieving the power sector targets. SEC is also contributing to the Vision 2030 objective of diversifying KSA’s exports: the company is supporting MoEnergy in developing international transmission interconnections with Egypt, Jordan, and Iraq with other geographies to be explored in the future. SEC has aligned its investments plan with the priorities of the KSA’s national plan for the electricity sector as well as its Vision 2030 sustainability objectives. SEC investment plan was developed with the support of Ministry of Energy to strengthen the company and the power sector.

What are your main priorities and target?

SEC’s priority is to have a reliable, efficient, and sustainable power sector in KSA. As such, our priorities include maintaining high security of supply and enhance system reliability and achieving first quartile in operational and safety key performance indicators. Regarding ESG, we have seen positive trends in reducing our carbon footprint over the past five years, driven primarily by fleet technology upgrades and improvements in the fleet technology mix. The company also sought to implement best international practices in preserving the environment and promoting social responsibility and governance. As a result, the company’s performance improved from last year by 25%, in a comparison of top international companies conducted by S&P Global. In regard to financial sustainability, we focus on optimizing operational and capital expenditures and capitalize on new business development opportunities to maximize shareholder value. For the localization and local content, we will focus on increasing localization of products and services.

What medium-term investments is SEC currently prioritizing and focusing on?

The focus of our investments is to boost the reliability and efficiency of the electricity system, support the expansion of the network and integrate large utility scale renewable plants. SEC plans to invest about SAR68 billion by 2030 on renewable integration and renewable impact reinforcement projects. In addition, the investment plan include projects to enhance SAIDI & SAIDI KPIs, reduce distribution and transmission losses, automation, safety, and environmental compliance.