03 - Mohammad Al Rafa'a - Presentation
-
Upload
raji-murugan -
Category
Documents
-
view
16 -
download
0
description
Transcript of 03 - Mohammad Al Rafa'a - Presentation
-
5/11/2012
1
Saudi Electricity Company (SEC)
Restructuring Project
N ti l G id
Restructuring Project
National Grid SA
1
Restructuring Targets 1
Contents
34
SEC&TheSubsidiaries OrganizationStructures2
NationalGridSA OrganizationStructures
Restructuring Impact on SEC External Stakeholders
5 Future Steps
2
-
5/11/2012
2
Restructuring Targets
3
unbundling a monopoly is a pre-requisite for market liberalization, which in turn provides long-term benefits such as: Competitive market which improve productivity, operation
RestructuringTargets
efficiency and quality of service.
Attract investment, that will contribute to satisfy the requirements of the large growth rates in electricity demand
It is very important to keep and maintainpower system stability, so restructuring willbe implemented gradually such that therebe implemented gradually, such that therewould be no impact on services providedby SEC
4
-
5/11/2012
3
In year 2000, SEC consolidated all electricity companies (10 Companies and 11 Electricity Projects) in one company named the Saudi Electricity Company (SEC).
A new organization structure was developed based on business
Preparation for Electricity market
functions (Generation, Transmission and Distribution).
All employees of the merged enteritis were placed in the new organization structure.
Financial separation of the business of generation, transmission and distribution
Procedures unification, best practice implementation and improvements programs.
Integration of automated systems and move to the comprehensive Enterprise Resource Planning (ERP) system
Strengthening the capacity of generation , transmission and distributionnetworks
5
Restructuring of SEC Generation, Transmission & Distributions Businesses to
the following subsidiaries:
SECBoardDecision
National Grid SADISTCO
All subsidiaries are limited liability Companies and fully owned by SEC
4 GENCOs
Companies and fully owned by SEC No impact or change on shares or shareholders due to
restructuring. A consolidated financial statement will be published by SEC
incorporating Subsidiary Companies financial results.
6
-
5/11/2012
4
SEC initiated the unbundling process by establishing 6 subsidiaries within a Single Buyer market structure
Expected Unbundling Stages of SEC
Before 1/1/2012
Transition Stage Medium-Term Stage Long-term Stage
SEC(vertically integrated)
SEC Holding
National Grid SA Distrco
4 Gencos
100% 100% 100%
Further Unbundling & Restructuring
1/1/2012
Ownership Separation of
Transmission or Generation
Companies from Holdco
Single Buyer Market
Principal Buyer Market with Wholesale Market Competition
Open market with retail
competition and market
exchange
Focus
7
Accordingly, new contractual interfaces and financial flows will need to be put in place
Contractual Interfaces and Key Financial FlowsContractual Agreement
Financial Flow
Customers
End-user Tariffs
Sales Agreement
Transmission CompanyDistribution Company
Genco AGenco AGenco AGeneration Company4
Power PurchaseLease Lease Energy & LeaseLease CollectedService Service Service
SEC (Holding) Company
Power Purchase Agreements
Lease Revenue
LeaseRevenue Capacity Revenue
Lease Agreement
Lease Agreement
CollectedRevenue
Service Level
Agreement
Service Level
Agreement
Service Level
Agreement
Note: Service charges related to SLAs are not shown to simplify figure
8
-
5/11/2012
5
In summary, the new organization model is based on the following allocation of responsibilities
Holding Company
Prepares and approves system planning (including generation expansion plan) and budgets
Performs long-term fuel planning and administers fuel supply agreements
Provides financing Develops new power plants tenders IPPs and administers their
Owns, operates and maintains
Develops new power plants, tenders IPPs and administers their contracts
Develops EHV transmission system and interconnections Acts as the single buyer of electricity and leases transmission
and distribution capacity Provides shared services to subsidiaries Monitors the performance of subsidiaries Liaises with ECRA for all regulatory matters
Distribution Company Owns, operates and maintains
the distribution network
Transmission Company 1. Ownership, operation and
maintenance of transmission networks.2. Operation and control of the
Generation Company A, p
power plants Plans and executes
enhancements, rehabilitations, replacements and extension projects
Issues substation demand forecast (sales and consumption)
Performs distribution network planning and executes projects
Manages customer services, billing and collection
Manages small isolated generators
2. Operation and control of the electrical system.3. Monitor network performance, and economical operation of power plants.4. Preparation requirements of transmission networks.5. Design and implementation of transmission projects (high voltage).6. Submit periodic reports on the performance of the transmission company to the Holding Company.7. Issuing budgets quarterly, and annual.
9
SEC&TheSubsidiariesOrganizationStructures
10
-
5/11/2012
6
SECOrganizationStructure
11
12
-
5/11/2012
7
TheOptimizedGroupingisamajorshiftfromthecurrentgeographicdistribution
Gencos Power Plants Location(During Period 2014 2021)
Al-Qurayyat
GhazlanDammam
Qurayyah
BerriQaisuma
Faras
Arar
Rabigh PP8
Hail
Al-Qasim
PP5
Shadgum
Al-Jouf
Madinah
Tabarjal
Rafha
Tabouk
Al-Wajh
PP12Qurayyah CC
Rabigh New
Ras Abu Qamees
PP14
PP13Al Rais
Ras Al KhairDuba GT
PP9 Uthmaniyah
JuaymahSafaniyah
Makkah
Rabigh
Shoaiba
JeddahPP8
PP7
Najran
Tihama
Bisha
Asir
Taif
Jizan GT
Juba
Shoqaiq
PP10
Sharourah
Jeddah South
DCA B
Shoaiba CC
PP14
BahaLayla
13
14
-
5/11/2012
8
CEORegulatoryAffairs
BoardofDirectors
OrganizationStructureforNationalGridSA
Operation&Control
GridMaintenanceProjectsPlanningEngineeringTransmission Finance
TechnicalServices
Business Coordination
BUDivision Department
15
NationalGrid SAOrganizationStructures
16
-
5/11/2012
9
As of 1/1/2012N ti l G id SA National Grid SA
Is Alive
17
Finalization of National Grid SA Company establishment procedures.
Appointment of Board of Directors members.
National Grid SA Go Live Steps
Appointment of CEO. Finalization of Organization Structure approved by
Board of Directors. Appointment of Executive Management. Automated systems update.Automated systems update. Transfer of Employees and other resources from
SEC to National Grid SA.
18
-
5/11/2012
10
Organizational Structure of the National Grid SA
approved Level I and II approvedBoard of Directors
CEORegulatory Affairs
Operations and Control
Grid Maintenance
HV ProjectsPlanningEngineeringTechnical Services
Transmission Finance
Business Coordination
Operation & Control COA
Operation & Control - WOA
Grid Maintenance Sector -COA
Projects Central
Projects West
Projects East
Network Planning
Planning Support
Engineering Services
Engineering & Design
Engineering Protection
TelecomEngineering
and SAS
Commissioning Services
Asset Quality Performance
Tele Communications
Grid Maintenance Sector -WOA
Grid Maintenance Sector EOA
Operation & Control - EOA
Operation &
SOA Grid Maintenance
Planning & Coordination
Projects South
Projects Support
Standard & Specifications
Services
Research & Development
BU Sector Dept. Section
Planning & Coordination
Planning & Coordination
Planning & Coordination
Planning & Coordination
Sector -EOA Operation & Control - SOA
National Control System
Operation Planning
System Control
Planning & Coordination
19
Duties & Responsibilities of Operation & Control Business Unit
To operate & control power transmission system kingdom Wide in economical & secured operation and safe conditionoperation and safe condition.
20
-
5/11/2012
11
Duties & Responsibilities of Operation & Control Business Unit
AlJoufT
HailT
TabookT QaysumahT
Qassim
T
TRiyadh
NCC
DammamT
Jeddah
TJubbah
NCC
C
E
S
W
T
Madinah
Yanbu
TNajran
TAbha
21
Duties & Responsibilities of Grid Maintenance Regional
(COA, WOA, EOA & SOA)
To operate and maintain the Transmission Network in the Region adopting cost effective maintenance practices, optimum maintenance scheduling per established maintenance policies and proceduresmaintenance policies and procedures, enhancing safety and life of the equipment.
22
-
5/11/2012
12
Duties & Responsibilities of Grid Maintenance Regional(COA, WOA, EOA & SOA)
23
Fiber Optic Network
24
-
5/11/2012
13
Duties & Responsibilities of Projects Business Unit
To manage the projects execution from awarding up toTo manage the projects execution from awarding up to close out stages for the HV ( 110 up to 132 ) system in all regions (COA, WOA, EOA, SOA).
To Implement and approve project programs. To Review, monitor and accept contractor construction
procedures . To Manage relationships with contractors to maintain
an ongoing dialogue with regular feedback.
25
Duties & Responsibilities of Planning Business Unit
Do the Network Planning and studies for the o t e et o a g a d stud es o t eHV system in all regions (COA, WOA, EOA, SOA), Follow up, Monitor and document the Load Forecast, secure Capital & Operating Budget , Right of Ways for transmission facilities keep and update thefacilities , keep and update the documentation and Geographical Information Systems.
26
-
5/11/2012
14
To prepare and Provide the SOW,
Duties & Responsibilities of Engineering Business Unit
o p epa e a d o de t e SO ,engineering & designs packages and engineering support during the various stages of projects of the HV Transmission Network Systems including Substations Transmission LinesSubstations, Transmission Lines, Protection and Telecommunications in all regions (COA, WOA, EOA, SOA).
27
Duties & Responsibilities of Technical Services Business Unit
To undertake commissioning of the newly installed transmission assets and ensure that they meet the Company Standards & Specifications and are operating as designed ,
Act as interface between System Operation and Project management in the energization of Transmission projects,
Monitor the Asset Performance and Service Quality To conduct frequent audit on project design packages and factory
test reports to ensure that all Transmission Projects are properly Design from all aspects and to conform that operation and g p pmaintenance and others positions & requirements are incorporated
To assure that all activities from project start-up until completion are bound within the framework of the Quality system
28
-
5/11/2012
15
Growth Indicators 2004 - 2017
Years
Main IndicatorsVoltage LevelCurrent SituationFuture Growth
20042010Growth%
2017Growth% %%
Total Length of O/H & U/G Circuit KM
EHV 11743180035329520151
HV2194128176283567063
Substation Numbers
EHV669341166152
HV4505492285390
Transformer Numbers
EHV24830925744200
HV11871536292403102
29
Restructuring Impact on SEC External
Stakeholders
30
-
5/11/2012
16
In the next stage, work will remain according to
Restructuring impact on External Stakeholders
existing policies and procedures and No
changes will happen in dealing with all
categories of consumers, contractors, suppliers g
and Banks.
31
Future Steps
32
-
5/11/2012
17
SEC is now performing the activities required for the unbundling of the four GENCOS d DISTCO d i 2013
Future Steps
GENCOS and DISTCO during 2013.
This situation will continue until the realization of the prerequisites for the transition to open market and
titi k t lib li ticompetitive market liberalization.
33
Through a study undertaken by SEC with a Consultant, it has became clear that:All countries who have liberalized their electricity market, have had the basic requirements (which are currently not available).
Market Liberalization Requirements
The most important of which are: 1.The availability of balanced tariff that reflects the cost for every
category of consumers to ensure adequate revenue for the Sector or a clear Governmental commitments to cover the deficit .
2.Availability of an acceptable reserve margin (from 10% to 15%) of generation capacity during peak timeof generation capacity during peak time.
3.Availability of reliable and inter-connected transmission system in Kingdom
4. A flexible and quick mechanism to modify tariff according to the variables to encourage investment .
34
-
5/11/2012
18
Thank You35