Our Values
Efficiency
Expertise
Reliability
Neutrality
Innovation
Community Focused
Transparency
Principal Buyer Roles & Responsibilities
Energy Procurement
Procuring electrical energy and capacity from the generators.
Executing PPA. ECA and On-sale agreement
Entering into PPA. ECA and On-sale agreement for the purpose of sale of electricity produced to Retail licensees and Large Consumers in the Kingdom.
Counterparty to Existing Generation
Act as s a counterparty to the existing generation of IPPs, IWPPs, excess captive generation.
Fuel Procurement
Procure primary and backup fuels for delivery to the generation licensees according to Energy Conversion Agreements.
Cross Border Trading
To utilize the opportunities of cross-border trading within the MENA region (and even with Europe) thus leading to a better generation cost optimization within the KSA and obtain necessary permits.
Reducing System Costs
To Drive down system costs and significant savings through market-based incentives and regular tendering of capacities.
Market Transformation
To Uphold central role and actively participation in the transformation of KSA Electricity Market.
Electicity Market Efficiency Improvement
To improve efficiency of the Saudi Electricity Market.
To create competition & Transparency
To Create cost-based competition and transparency among generation, distribution and retailer portfolios.
Contracting Excellence
To implement contracting excellence for the Competitive Electricity Market (CEM) and Support the regulator in developing competitive power market.
Optimizing Balancing Funds
To undertake a role in relation to the balancing fund and maintain adequate working capital requirement as may be approved by the ECRA from time to time and drive down the size of Balancing Funds.
Future Capacity Planning
To conduct optimum seven (7) years future planning in order to avoid excess or short generation capacity in the market.
System Services
To Procure System Services from Generation Licensees; receive payment from the Transmission Licensee for System Services and facilitating development of a market for trading of electricity System Services in the Kingdom.
Power Scheduling
To provide information necessary for power scheduling to the Transmission License.
Metering Compliance
To ensure that appropriate meters are in place for the purpose of measuring quantities of energy traded and compliance with the specifications in the relevant code.
About Us
The Kingdom of Saudi Arabia (KSA) is reforming its electricity sector with the objective of introducing a Competitive Electricity Market (CEM). The Competitive Electricity Market shall aim to improve efficiency, transparency of the sector through continuous competitive price discoveries and enhance participation of all market players and to sustainably move from a regulated electricity market with the vertically integrated utility towards a competitive electricity market. Principal Buyer or Saudi Power Procurement Company (SPPC) has been granted the license to facilitate the transitions and the major changes in the sector.
Principal Buyer has a central role in facilitating market transition as a "Transformation Agent" and Its governance is a key enabler. It needs give key Government bodies that have the target to transform the market the possibility to steer SPPC in the right direction and integrate relevant stakeholder views.
The new market design will be measured against the objective to increase welfare by removing operational inefficiencies and large subsidies.
To build up the National Renewable Energy Program (NREP), KSA Vision 2030 has set an initial target of generating 9.5 GW of renewable energy projects up to 2023. To ensure the successful implementation of NREP, Principal Buyer has pivotal role in the whole process and shall be counterpart of all Power Purchase Agreements of RE power Projects. PB shall procure all energy from these RE power projects and make payments up to the useful technical and contractual life of 20 to 25 years of the projects. PB shall perform all obligations and responsibilities to be provided in the PPAs.
