Electricity generation analyzes in an oil-exporting country: Transition to non-fossil fuel based power units in Saudi Arabia

In Saudi Arabia, fossil-fuel is the main source of energy (100% in power generation sector for example) and it is increasing year by year in this country. Due to the huge growth and development in the infrastructure and also investment in the energy sector, the electricity consumption in Saudi Arabia has been increased and will continue to increase at a very fast rate. At the moment more than half a million barrels of oil is used directly for power generation every day. In this study, we assess the power generation situation of the country and its current and future conditions through a modeling approach. Then we will carry on a sensibility analysis so as to briefly evaluate an optimal, realistic and efficient way of electricity production by taking into account the integration of the other alternative (non-fossil based) resources such as solar and nuclear into the power generation means of the country. At the end, the impact of the power generation optimization on the economy of the country (import/export, financial gain/lost, political benefits...) will be analyzed. Firstly we present the current situation by detailing the costs of current and future generation park of electricity. In a second step, we present the model, its paradigm and the results of the baseline scenario considered. Finally, we develop the results of different scenarios that will allow us to conclude and bring new elements for reflection. Recall that the model aims to find an economic optimum under certain constraints. The model does not account most externalities that are difficult to be quantified.