Publications

Future Trends in Electricity Demand in Saudi Arabia and the Gulf Region

Long-term electricity demand projections are fundamental for power generation expansion planning and for broader energy policy formulation. Studies show that electricity demand in Saudi Arabia and the GCC region has been growing rapidly over the past decades. This growth has…

How Can Energy Storage Catalyze the Electricity Policies of Gulf Cooperation Council Members? Issues and Options

Rolando Fuentes, Shahid Hasan, Frank Felder

Saudi Arabia and other Gulf Cooperation Council (GCC) members are working in parallel to reform their electricity markets and achieve ambitious renewable energy deployment goals. The motivation for this agenda is multifaceted, and increasing economic efficiency is one of several…

Fuentes, Rolando

Hasan, Shahid

Felder, Frank

Projecting Saudi Sectoral Electricity Demand in 2030 Using a Computable General Equilibrium Model

Salaheddine Soummane, Frédéric Ghersi

Projecting future demand for electricity is central to power sector planning, as these projections inform capacity investment requirements and related infrastructure expansions. Electricity is not currently economically storable in large volumes. Thus, the underlying drivers of electricity demand and potential…

Soummane, Salaheddine

Frédéric Ghersi

Climate and Power System Reliability in the Aftermath of the Texas Blackouts

Marie Petitet, Burcin Unel, Rolando Fuentes, Frank Felder

The February 2021 blackout in Texas underscored the importance of reliable and resilient power systems. In this commentary, we discuss the roles of regulators, markets, fuel and generation supply chains, and interdependent infrastructures, and finds that they need to be…

Marie Petitet

Burcin Unel

Fuentes, Rolando

Felder, Frank

Trends in Global Solar PV Installation in 2020

Amro Elshurafa

Dozens of governments worldwide have supported, and still support, renewable energy technology deployment, including solar photovoltaics (PV). This has been driven by their ambitions to be energy independent, meet carbon emissions reduction targets, and contribute to their domestic economies through…

Elshurafa, Amro

If Renewable Energy is Getting Cheaper, Why Are Electricity Prices Increasing?

Salaheddine Soummane

In this commentary, we discuss the impact of renewable energy penetration on end-user electricity prices driven by the observed development in European countries since 2000. We conclude with a discussion on how Saudi Arabia is benefiting from its development of…

Soummane, Salaheddine

Assessing the Role of Renewables in Reducing Emissions in the Saudi Power Sector Using Mixed-Integer Optimization

Amro Elshurafa, Hatem Al Atawi, Salaheddine Soummane, Frank Felder

Renewable energy (RE) technologies are viewed as a critical means of reducing power sector-related emissions. Using mixed-integer optimization, we evaluate the extent to which renewable energy reduces carbon emissions in the Saudi power sector.

Elshurafa, Amro

Al Atawi, Hatem

Soummane, Salaheddine

Felder, Frank

Global Trends in Cloud Computing and Saudi Arabia’s Response

Hatem Al Atawi, Amro Elshurafa

As data centers become operational in the Kingdom, they will be an additional driver of long-term electricity demand. KAPSARC is actively studying these challenges and their implications for the economy by modeling and forecasting electricity demand.

Al Atawi, Hatem

Elshurafa, Amro

Overview of Saudi Electricity Demand (1970–2018)

Salaheddine Soummane

Saudi Arabia’s demand for electricity is undergoing unprecedented changes. In recent years, the government has implemented several efficiency measures and pricing reforms to curb demand growth. These measures started delivering concrete results in 2016. After decades of rapid growth, the…

Soummane, Salaheddine

Advancing Market Integration and Decarbonization: How to Ensure a Smooth Transition?

The concept of connecting electricity markets, which started with the sole objective of maximizing economic gains, is now being increasingly expanded to fulfill other policy objectives, primarily to support the low-carbon future energy system. The importance of clearly articulating policies,…

Private Participation in the Renewable Energy Transition

Fatih Yılmaz

The electricity sector captures a significant portion of PPI flows in developing countries. Over half (51%) of total PPI flows in developing countries since 1995 (~ US$1.9 trillion) went into the electricity sector. This figure covers the privatization of existing…

Yılmaz, Fatih

Utility-Scale Storage: Sleeping Giant or Mirage?

The Kingdom of Saudi Arabia, among other countries, has ambitious plans to install a significant amount of renewable capacity by 2040. A high share of renewable generation in the power system can, however, result in grid instabilities. Energy storage technology…

Saudi Arabia Energy Report

Abeer AlGhamdi

Saudi Arabia is one of the world’s leading oil producers and exporters. It has the second-largest proven crude oil reserves after Venezuela. Saudi Arabia’s oil reserves have made it one of the most significant players in the global oil market.…

AlGhamdi, Abeer

The Value of Storage in Electricity Generation: A Qualitative and Quantitative Review

Amro Elshurafa

Electricity storage technology has many useful applications in the energy sector and can complement variable renewable power generation to achieve a low-carbon future. For policymakers, utilities, and investors, effective decisions in this context require an understanding of how to determine the monetary value of storage.

Elshurafa, Amro

Distribution Networks Tariff Design in the Era of Decentralization: A Business Model Approach

Rolando Fuentes

In this paper we discuss the unexplored two-way relationship between distribution network tariff design and the emergence of new business models in the power sector. Distribution network tariffs have traditionally used a cost accounting method. We suggest, instead, the use…

Fuentes, Rolando

Saudi Electricity Demand Drops for the First Time on Record

Salaheddine Soummane

Since 1990, Saudi Arabia’s electricity consumption has risen rapidly and consistently, at an average rate of around 6% per year. This growth rate is considerably high when compared with the global average growth rate of 3% and 4.8% in developed…

Soummane, Salaheddine

Electricity Sector Liberalization in Egypt: Features, Challenges and Opportunities for Market Integration

Shahid Hasan, Turki Alaqeel, Hafez El-Salmawy

KAPSARC has initiated a research project to develop insights that can facilitate the establishment of a well-functioning integrated electricity market comprising the member states of the Gulf Cooperation Council (GCC). It aims to assess the key issues affecting electricity market…

Hasan, Shahid

Alaqeel, Turki

Hafez El-Salmawy

On the Incremental Investment in Residential Energy Efficiency: A Saudi Perspective

Walid Matar

It has been shown in the literature that, in aggregate, actual household energy efficiency adoption is less than would be expected economically. Energy economists and policy analysts have described this phenomenon as the ‘energy efficiency gap.’ There could be myriad…

Matar, Walid

GCC Residential Electricity Tariffs

Abeer AlGhamdi

Gulf Cooperation Council (GCC) countries have raised their domestic energy prices in recent years in a bid to increase energy efficiency, rationalize government spending and balance their budgets. Saudi Arabia and the United Arab Emirates (UAE) have taken bold steps to…

AlGhamdi, Abeer

The Future of Cooling in Saudi Arabia: Technology, Market and Policy Options

The world needs cooling. Air conditioning (AC) and refrigeration protects our health and productivity at home and work, and supports a host of critical services such as internet data centers, food delivery, and medicine. Around 1.6 billion AC units are…