Analysis of Saudi Arabia's Electricity Market Development Trends And Transformer Equipment Demand

I am a technical engineer responsible for overseas market technical support at Zisheng Electric. In recent years, the Saudi power market has been developing rapidly. Through our cooperation with local EPC contractors and project owners, we have gained a lot of practical experience. This article is a summary of our observations, focusing on the market trends we have witnessed and their specific impact on the demand for transformer equipment.

I. Three Key Changes in the Saudi Power Market

The first change is the transformation of the load structure. In the past, Saudi Arabia’s major electricity demand came from air conditioning and seawater desalination. However, driven by industrialization and urban development, large-scale industrial projects, data centers, and commercial complexes are becoming increasingly important power consumers. The electricity characteristics of these users are completely different from residential loads — their load curves are more stable, they require higher power supply reliability, and they have extremely low tolerance for voltage dips and power interruptions.

The second change is the increasing share of renewable energy in the power mix. Saudi Vision 2030 has set a target of achieving 58.7GW of renewable energy capacity by 2030, including 40GW of solar photovoltaic (PV) power and 16GW of wind power. This target has already been translated into specific projects. From our perspective, the bidding activities for large-scale solar and wind power projects in Saudi Arabia have significantly accelerated over the past two years.

The third change is the ongoing adjustment of the power grid structure. With the large-scale integration of renewable energy, the power grid is transitioning from one-way power flow to two-way power flow. Distribution systems are evolving from passive load networks into active regulation nodes. The Saudi Electricity Company (SEC) continues to increase investment in the construction and upgrading of substations.

The combination of these three changes is creating a fundamental shift in the demand structure for transformers.

II. What Changes Are Taking Place in Transformer Equipment Demand

First, the demand for 33kV-rated transformers is increasing significantly. In the past, Saudi Arabia’s distribution voltage level was mainly based on 13.8kV. However, newly developed solar power plants and wind farms are now widely adopting 33kV collector systems. The reason is straightforward — 33kV power transmission provides higher capacity and lower power losses, which is especially advantageous for large-scale renewable energy projects.

We have participated in several large-scale solar projects in Saudi Arabia, and 33kV transformers have basically become standard equipment in pad-mounted transformers and step-up substations.

Secondly, high-temperature resistance design is no longer an optional feature; it has become a mandatory requirement. In Saudi Arabia, summer ambient temperatures exceeding 50°C are common. Since the IEC standard is generally based on a 40°C ambient temperature, transformers designed according to standard conditions may require derating when operating in Saudi Arabia.

During the bidding stage of several projects, we encountered cases where competitors calculated transformer capacity based on standard ambient temperatures. However, after commissioning, the transformers were running at full load or even overloaded during the hottest periods of summer. As a result, project owners requested replacement.

Nowadays, local project owners have increasingly strict requirements. Parameters such as temperature rise limits, top oil temperature, and cooling methods are carefully reviewed during the technical evaluation stage.

We have prepared a comparison table of common requirements for Saudi projects as a reference.

Key Transformer Design Parameters: Saudi Market Requirements vs. Standard Design

Another significant change is that technical requirements are becoming increasingly specific. In the past, Saudi projects purchasing transformers mainly followed SEC specifications. However, this situation has changed. Each project now comes with more customized requirements.

For example, some projects require transformers to have enhanced overload operation capability, some require special grounding systems, and others require integrated smart online monitoring systems.

This means that the traditional approach of winning projects purely through low pricing is becoming increasingly difficult. The depth of technical response capability and previous project experience are becoming more important factors in supplier selection.

III. Requirements for Transformer Suppliers in the Saudi Market Are Increasing

The requirements from SASO (Saudi Standards, Metrology and Quality Organization) for imported electrical equipment are becoming increasingly strict. For products such as transformers, suppliers must comply with both IEC standards and relevant local regulations.

During our recent cooperation with customers on SASO certification, we have clearly noticed that the review process has become more detailed, especially regarding energy efficiency requirements and environmental standards.

In addition, the technical evaluation process of large-scale EPC projects is increasingly focused on manufacturers’ export experience and project references. Without successful Saudi project experience, it is becoming more difficult for suppliers to enter the shortlist.

This has created a market entry barrier — suppliers who establish experience earlier gain stronger advantages, while new entrants face higher challenges and costs.

IV. Zisheng Electric’s Experience in the Saudi Market

We did not enter the Saudi market from scratch. Over the years, we have accumulated experience from dozens of operating projects in Saudi Arabia, covering solar power, wind power, industrial parks, and substations. Our biggest takeaway is that this market requires both patience and strong technical capabilities.

Let’s take an example. A 33kV pad-mounted transformer for a solar project may appear to be a standard product, but during actual project execution, the requirements from local owners regarding short-circuit impedance, grounding methods, and protection ratings are often different from conventional designs.

Without sufficient technical clarification in the early stage, simply submitting a standard solution based on past experience will inevitably lead to design modifications during the technical evaluation stage. Any design change means additional time costs and project risks.

Now, for every Saudi project, we assign dedicated technical engineers to communicate with customers. We participate from the design stage and confirm all key parameters before the bidding process to minimize technical risks.

This experience was also gained through lessons learned from previous projects.

In one of our early projects, the transformer design followed IEC 60076 standards for temperature rise calculations. However, we underestimated the impact of the consistently high load factor under actual Saudi operating conditions.

After commissioning, during the first summer operation, both the oil temperature and winding temperature approached alarm levels. Although no failure occurred, the project owner was not satisfied with the operating condition.

Based on this experience, we incorporated the lessons into our internal design standards. For the Saudi market, we have developed dedicated thermal design criteria — using 50°C ambient temperature as the basic design condition, increasing the cooling margin by 15% compared with conventional designs, and optimizing our underlying data models based on local environmental conditions.

With these accumulated experiences, our execution of Saudi projects has become much smoother compared with when we first entered the market.

V. Our Outlook for the Future

The transformation of the Saudi power market has only entered an accelerated phase. Renewable energy capacity continues to expand, while demand for transmission and distribution grid upgrades is also being released.

In this market, transformer equipment is experiencing a combination of both replacement demand from existing infrastructure and new demand from expanding projects. The market opportunity will continue to exist, but requirements for suppliers’ technical capabilities, delivery capabilities, and localized service capabilities will become increasingly higher.

For companies looking to enter the Saudi market, our advice is straightforward: fully understand the applicable standards, accurately evaluate the environmental conditions, and complete technical communication before the project moves forward.

The Saudi market has opportunities, but it also has strong competition. What is truly needed are solutions that can be successfully implemented and operate reliably over the long term.

About Zisheng Electric

Zisheng Electric has accumulated years of project experience in the Saudi market. Our product portfolio includes oil-immersed transformers, substation transformers, pad-mounted transformers, pole-mounted transformers, dry-type transformers, and other power distribution equipment. We hold 22 utility model patents and 3 software copyrights, have passed ISO 9001 quality management system certification, and comply with relevant IEC standard requirements.

we can provide an initial solution within 24 hours, including:Equipment selection、Line loss calculation、Investment return estimation

Considering Saudi Arabia’s challenging conditions, including high temperatures and sand and dust environments, we provide dedicated optimization solutions in areas such as temperature rise design, protection ratings, and cooling systems.