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 Licensing of Al-Shuqaiq Water and Electricity Company

Publishing Date : 17/08/2015

According to a news item in its issue of 27/2/1428 A.H (17/3/2007), Al-yum newspaper reported that Al-Shuqaiq Water and Electricity Company has been granted a license by the Electricity & Co-Generation Regulatory Authority to engage in the power generation & cogeneration activities.

Dr. Abdullah M. Al-Shehri, Vice-Governor for Regulatory Affairs of the Authority indicated that the license is for the second phase of Al-Shuqaiq station. This phase will have a capacity of generating 850 MW of electricity and 212000 cubic meters of desalinated water daily. Total investment for the facility will be over 7 billion riyals. Al-Shuqaiq is a small coastal village north of the City of Jazan in the southwestern part of the Kingdom.

Dr. Al-Shehri added that the project implementation has been expedited in accordance with the government desire to accelerate its commencement process. The project company was incorporated within a very short period of time. Commercial operation is expected to start in 2010.

The Electricity & Cogeneration Regulatory Authority issues licenses for all electricity & cogeneration industry activities such as generation, transmission, distribution and trading of electricity as well as production of desalinated water. The licenses require the licensees to maintain highest quality standards and seek to attain efficiency of performance. The Authority oversees the performance of licensees and applies the Electricity Law and its Implementing Regulations to violators of conditions of the licenses.

The Authority also issues permits to investors considering building electricity projects. These permits allow the investor to conduct field and economic studies of the proposed project. After establishing the viability of the project and completing all requirements to establish it, and before commencement of actual implementation, the investor must obtain from the Authority the license in its final form.

Dr. Al-Shehri added that the Authority is continuing to issue licenses to the Saudi Electricity Company for generation, transmission and distribution of Electricity as well as issuing licenses to the Saline Water Conversion Corporation for electricity generation and the associated desalinated water production. It also issues licenses to a number of entities involved in the electricity and cogeneration industries such as Al-Shoaibah project and Saudi-Aramco.