The Prospects for Coal-Fired Power Generation in Saudi Arabia

28 Pages Posted: 19 Mar 2016

See all articles by Walid Matar

Walid Matar

King Abdullah Petroleum Studies and Research Center (KAPSARC)

Rodrigo Echeverri

Independent

Axel Pierru

King Abdullah Petroleum Studies and Research Center (KAPSARC)

Date Written: December 2015

Abstract

Almost all of Saudi Arabia’s electric power generation is fueled by oil and gas. Plans for future capacity envisage nuclear and renewables supplementing this mix and freeing up oil for other revenue-generating opportunities. Coal-fired generation has been promoted in some Gulf Cooperation Council (GCC) countries but not, so far, in the Kingdom. Our analysis finds that:

At current administered prices of oil and gas, other resources of energy such as solar, nuclear, or imported coal are not competitive for power generation.

If decisions were made based on deregulated oil and gas prices:

• With the reference coal price, only moderate levels of coal-fired capacity would be introduced. If the remaining capacity were made up of nuclear and solar, this would result in lower Saudi CO2 emissions from power generation than under a ‘business as usual’ scenario.

• With the low coal price, CO2 emissions in 2030 cannot be maintained at their current level since coal, rather than solar and nuclear, is used to displace oil and gas from the generation fuel mix.

Some forecasts of coal markets anticipate significant increases in real export prices, which would make coal-fired power generation unattractive compared with constructing nuclear power.

Keywords: coal, Saudi Arabia, energy, electricity

Suggested Citation

Matar, Walid and Echeverri, Rodrigo and Pierru, Axel, The Prospects for Coal-Fired Power Generation in Saudi Arabia (December 2015). Available at SSRN: https://ssrn.com/abstract=2749596 or http://dx.doi.org/10.2139/ssrn.2749596

Walid Matar (Contact Author)

King Abdullah Petroleum Studies and Research Center (KAPSARC) ( email )

Riyadh, Central Province
Saudi Arabia

HOME PAGE: http://https://www.researchgate.net/profile/Walid_Matar

Rodrigo Echeverri

Independent ( email )

No Address Available

Axel Pierru

King Abdullah Petroleum Studies and Research Center (KAPSARC) ( email )

Riyadh, Central Province
Saudi Arabia

HOME PAGE: http://www.kapsarc.org/

Register to save articles to
your library

Register

Paper statistics

Downloads
61
Abstract Views
881
rank
352,064
PlumX Metrics