Saudi Arabia’s Electricity Consumption Soars, Oil Burn Doesn’t

16 Aug 2024 Issue: 67 / 33 By: Jamie Ingram

Saudi Arabia electricity generation surged by 6% in the first half of the year. Yet oil burn is down against 2023 levels thanks to higher gas availability and the growing role of renewables in the power mix. Higher fuel oil imports in June raise questions over whether oil burn gains may return in H2.

The Saudi Electricity Company (SEC) says that electricity consumption increased by 6.1% year-on-year to a record 146TWh for the first half of 2024. Peak demand was up 9.5% at 72.9GW. The SEC grid provides electricity to the vast majority of Saudi Arabia, delivering around 97% of the total last year, and its data is therefore illustrative of the country as a whole.

“In the first half of 2024, we have continued to experience strong growth in power demand across the kingdom, reflecting economic expansion and increased urbanization,” SEC CEO Khaled al-Gnoon told his firm’s Q2 earnings call on 12 August. Electricity consumption surged last year by its fastest rate since 2021 to 314.8TWh and is on course to smash this figure for 2024 (see charts 1&2). (CONTINUED - 1413 WORDS)