Saudi Electricity Company (SEC)
The Saudi energy company produces and distributes electricity, develops innovative solutions that are designed to distinguish Saudi Electricity's production from competitors. The company was founded in 2000, with headquarters in Riyadh. Subsidiaries of the Saudi Electricity Company are Dawiyat Integrated Telecommunications and Information Technology, National Grid SA, Saudi Electricity Global Sukuk, Dawiyat Telecom, and others.
In the context of improving performance through new techniques, SEC has created an innovative energy incubator and research centers based on King Abdulaziz City for Science and Technology University. Projects serve as the basis for the development of company enterprises and correspond to five main areas. These include smart energy use, efficient industry, system reliability and stability, renewable energy, and environmental conservation.
In the Dahran Technology Valley, the Saudi Electricity Digital Modeling Research Center is located, which houses the lab with the most significant electrical network simulator. It consists of controllers for dynamic compensators and a DC system.
Joint projects with King Abdulaziz City University for Science and Technology are located in Riyadh and represent many research centers in various energy fields. There is a renewable solar energy department that creates technologies in the field of energy conservation. Another research institution is developing distributions and smart networks. It has a Smart Grid laboratory, which tests and researches the latest technologies for network automation and delivery of generation.
King Abdulaziz City for Science and Technology also created a division for generation and fuel efficiency. The goal of the research center is the introduction of environmentally friendly technologies for the production of electricity.
There is also a research project management department and incubation and entrepreneurial center. In the first, all of the above projects are monitored and tracked, and in the second, they are implementing plans for the energy sector of Saudi Arabia.
Transactions and financial performance of Saudi Electricity Co
In early 2019, SEC’s subsidiary, Dawiyat Integrated Telecommunications and Information Technology, signed a memorandum with Nokia. It talks about introducing a 5G network in Saudi Arabia. The collaboration took place as part of the NTP 2020 and Saudi Vision 2030 development programs. The agreement confirms the agreement of companies to participate in the development of 10 million smart meters of telecommunication networks.
In 2019, another power transmission station was opened with investments of 220 million rials. The project has been implemented to support Saudi Arabia’s strategic goals of reducing oil dependence.
In the same year, another subsidiary of Dawiyat Telecom completed one of the stages of the deployment of fiber optic networks in Jeddah, Dammam, Sudair, and Harjah. The project was implemented as part of the National Industrial Development Program and aimed to promote digital infrastructure for the use of 5G and IoT.
Saudi Electricity Co reports for the second quarter of 2019 show that net profit fell by 57.28% and amounts to 789 million rials. In the second quarter of last year, profit amounted to 1.84 billion rials. The company attributes the decrease in profits, compared with the previous year, to the decline in sales and an increase in the cost of financing research projects.
From April to June 2019, SEC revenue fell 38.04% to 1.82 billion riyals, and in the first half of the year, the company estimated losses of 700 million riyals against a profit of 633 million riyals. Revenue decreased by 4.07% to 27.91 million riyals.
