Reuters reported that Saudi Arabia will need to invest over SAR 500 billion over the next 10 years to meet rapidly rising power demand.
Mr Abdullah al-Hussayen Saudi Water and Electricity Minister said that the country with the biggest Arab economy and a population that has ballooned to over 27 million faces sporadic power cuts in summer when demand for air conditioning surges. There is a need for projects over the next 10 years with investments that exceed SAR 500 billion.
Mr Hussayen said that power consumption rose by 9% in the H1 of 2012 from last year's figure. Peak demand in the summer was up 7% or an increase of 3,500 MW.
In May, Saudi Arabia's deputy electricity minister revised up estimates for the amount of investment needed in power projects over the next decade to SAR 400 billion from 300 billion.
Saudi Arabia plans to generate some electricity from solar and nuclear plants and is also considering wind waste and geothermal energy sources as it seeks to reduce reliance on oil and gas.
Mr Khalid al Sulaiman VP for renewable energy at King Abdullah City for Atomic and Renewable Energy said that how much of the kingdom future energy mix will be meets by each technology may be agreed in the first quarter of next year.