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Renewables to drive Saudi switchgear expansion

16 July 2024

The high-voltage (HV) switchgear market in Saudi Arabia is one of the fastest-growing globally, with a market value of $901.65m in 2023, according to a recent report by GlobalData.

Gas-insulated substations (GIS) account for about 90% of the total value, driven by the extreme environmental conditions prevailing in the kingdom.

According to the report, Saudi Arabia had 1,248 transmission substations in the 72-172 kilovolt (kV) segment and 246 substations in the over 172kV segment in 2023. The total length of transmission lines in the kingdom stood at 95,564 circuit kilometres (Ckm).

GlobalData expects the total number of transmission substations in the 72-172kV segment to rise to 1,327 and the number in the over 172kV segment to increase to 269 by 2028.

The transmission line length in the kingdom by 2028 is expected to reach 100,360Ckm.

The findings for Saudi Arabia are part of a broader report looking at global switchgear market trends.

"Increasing electricity demand is propelling the HV switchgear market in growing economies in Asia Pacific and the Middle East," the report said.

Future transmission investments in Saudi Arabia will be directed towards developing grid infrastructure to evacuate power from the upcoming renewable energy plants, in addition to grid refurbishment and modernisation.

The report said: "Saudi Electricity Company (SEC) has awarded transmission contracts worth SR6.8bn ($1.8bn) for the construction of new infrastructure and expansion or extension of existing substations [between January 2020 and July 2021].

"In March 2023, the Gulf Cooperation Council Interconnection Authority awarded a contract to SEC for upgrading the Al-Fadhili high-voltage, direct-current (HVDC) converter station to exchange up to 1.8GW among GCC countries.

"To this end, 3,600Ckm of transmission lines will be added by SEC [between 2023 and 2025] to the nation’s grid, with an investment of about SR5.4bn."

In June 2023, Hitachi Energy signed agreements with SEC and Enowa, the utility subsidiary of Saudi gigaproject developer Neom, under the supervision and direction of the Energy Ministry.

The agreements comprise the supply of three HVDC transmission systems to Enowa in northwest Saudi Arabia. The combined power capacity of the three HVDC lines will be up to 9GW.

Adverse environmental conditions 

The geographical and climatic conditions in Saudi Arabia affect the electrical equipment installed in the substations. The extreme temperature, sandstorms and salt-laden atmosphere affect the performance and service life of the switchgear equipment.

In addition, outdoor air-insulated switchgear (AIS) substations are difficult to operate and maintain in such conditions. This has made GIS the most viable option for substation projects in Saudi Arabia. Most of the substations are indoors, protecting the switchgear from the harmful environment and increasing reliability. This will be a major factor that propels the GIS market in Saudi Arabia, which is more predominant than AIS in the region.

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Jennifer Aguinaldo

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