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Saudi Aramco: Public

2017Electrical Equipment Workshop


Disclaimer

The next slides contain forward-looking statements regarding future events based on

current expectations, estimates, forecasts, and projections. The data is subject toupdating, revision, further verification and amendment without notice. No reliance may

be placed for any purpose on the information or opinions contained in this presentationor any other document or statement, or on the completeness, accuracy or fairness of

such information or opinions therein. No representation or warranty, express or implied,

is made or given by or on behalf of Saudi Aramco or its employees, or any other personas to the accuracy or completeness or fairness of the information or opinions contained

in this presentation and no responsibility or liability is accepted by any of them for suchinformation or opinions or for any errors, omissions, misstatements, negligent or

otherwise, or for any communication written or otherwise, contained or referred to in thispresentation.


Table of content

• Introduction to the Electrical Workshop

•Current and Voltage transformers (CT – VT) manufacturing

•Electrical fuses manufacturing

•Circuit breakers manufacturing

•Relays manufacturing for industrial applications

•UPS manufacturing for industrial applications

•Batteries manufacturing for industrial equipment

•Electrical inverters manufacturing

•Low voltage motors manufacturing

•Conduit and fittings manufacturing

•Smart Meters


Current and voltage instrument transformers manufacturing represents an attractive opportunity

Source: Saudi Aramco analysis

Additional SME opportunities

Testing After-sales services

SMEs to establish world class testing facilities (ratio test, resistance measurement, load test)

SMEs for after-sales services such as installation, maintenance etc.

Manufacturing opportunities

Final manufacturing Components Manufacturing

Potential to develop facilities in

collaboration with global players with

existing presence in KSA

Potential to set-up manufacturing

facilities for castings, windings,

insulators and magnetic cores

Our focusOur focus


Instrument transformer types

• A step-down transformer which steps down the current to a known ratio

• Primary consists of one or more turns of thick wire connected in series with the line while the secondary consists of a large number of turns of fine wire

Source: IEEE, Manufacturers Saudi Aramco analysis

Current transformers Voltage transformers

• A step down transformer which steps down the voltage to a known ratio

• Primary consists of a large number of turns of fine wire connected parallel to the line while the secondary winding consists of a few turns

Instrument transformers are step-down transformers and consist of two primary types: Current and Voltage transformers


KSA expected market size evolution

Source: Frost and Sullivan, Expert interviews, Manufacturers, Saudi Aramco analysis

167 176 186 197 208

77 81 85 8994

5%

2018

244271

2021

302

2022

286

20202019

257

Demand from switchgears

Demand from power transformers

KSA demand is expected to grow at ~5% annually, driven by demand from Utilities, Oil and Gas and other manufacturing industries

Value(‘000 units)

The demand for CT-VT instrument transformers in Saudi Arabia is expected to reach ~302,000 units by 2022


Source: Frost and Sullivan, Expert interviews, Manufacturers, Saudi Aramco analysis

244 257 271 286 302

252 269 286 305 325

2020

591

526

2019

558496

2018 2022

6276%

2021

Saudi Arabia

Rest of GCC

KSA market demand is expected to be roughly half the overall GCC demand for CT-VT instrument transformers

GCC expected market size evolution

Value(‘000 units)

The demand for CT-VT instrument transformer in GCC is expected to reach ~627,000 units by 2022


1. Subject to change depending on speed of technology maturity and market conditions. Short term :2 -3 years, Medium term:4-5 years, Long term> 5 yearsSource: Saudi Aramco analysis

Opportunities

1.Establish technical

facilities for design of electrical equipment

2. Manufacture iron, Silicon steel alloys, copper, epoxy to meet the specifications needed for CT-VT components

2. Potential to develop manufacturing facilities for windings, insulators and magnetic cores

4. Establish facilities for final manufacturing of CT and VT transformers, made to final customer specifications

5. Establish world scale testing facilities for transformers (ratio test, resistance measurement, load test)

6. Provide operational and after sales support including

– Installation and commissioning

– Maintenance

Time to maturity1Short term Medium term Short term Short term Short term

Input materialsComponents manufacturing

Final manufacturing and testingSales and after-sales services

Design

Value chain opportunities

Value chain gaps translate into opportunities that can be localized within KSA


Table of content


• Current and Voltage transformers (CT – VT) manufacturing

• Electrical fuses manufacturing

• Circuit breakers manufacturing

• Relays manufacturing for industrial applications

• UPS manufacturing for industrial applications

• Batteries manufacturing for industrial equipment

• Electrical inverters manufacturing

• Low voltage motors manufacturing

• Conduit and fittings manufacturing

• Smart Meters




Testing

SMEs to establish world class testing facilities


Final manufacturing Components manufacturing

Potential to develop facilities for medium voltage and low

voltage fuses final manufacturing

Potential to set-up manufacturing facilities for metal

based items (copper and aluminum) such as fuse element,

conductors, wire holder, strikers etc. and insulators

Our focusOur focus

Electric fuse manufacturing represents an attractive opportunity within KSA


Electric fuse types

• Defined as fuses rated <2.4 kV as low voltage

• Wide range of commercial and consumer applications, LV distribution

Source: IEEE, manufacturers, Saudi Aramco analysis

Semi enclosed or rewireable type

Totally enclosed or cartridge type

• Defined as fuses rated >2.4 kV and up to 38 kV as medium voltage

• Primarily applications include motor protection and distribution

Expulsion typeCurrent limiting

Low voltage fuses Medium voltage fuses

Electric fuses are protective devices and categorized based on the voltage ratings they are designed to handle


Source: Icon Group, UN Comtrade, Saudi Aramco analysis

2018 2019 2020 2021 2022

4%30

23

6

22

7

28

6

21

29

25

6

2120

27

6


Low voltage

Medium voltage

Value(US$ million)


Forecasted demand for electric fuses in Saudi Arabia is estimated to reach ~US$30 million by 2022


Source: Icon Group, Saudi Aramco analysis

47

30

24

56

2021 2022

29

53

2020

27 28

2321 22

25

5%

49

25

2018

51

2019

Saudi Arabia

Rest of GCC

KSA market demand is expected to be roughly 55% of the overall GCC demand for electric fuses

Value(US$ million)


Forecasted demand for electric fuses in GCC is estimated to reach ~US$56 million by 2022


Opportunities

1. Opportunities to custom engineer fuses for medium voltage applications for KSA customers

2. Manufacture copper, aluminum, silica to meet the specifications needed for fuse components

3. Manufacturing facilities for metal based fuse element (copper and aluminum), conductors, wire holder, strikers etc. and 1 facility for insulators

4. Establish facilities for final manufacturing of low voltage fuses

5. Establish facilities for final manufacturing of medium voltage fuses made to final customer specifications

6. Establish world scale testing facilities for fuses

7. Limited, since after-sales activities such as distribution have already been localized


Input materials

Components manufacturing

Final manufacturing and testing

Sales and after-sales support

Design





Table of content











• Smart Meters




Testing After-sales services

SME opportunities to establish testing and certification facilities

SME opportunities for after-sales services such as refurbishments and maintenance



Potential to develop facilities for medium

voltage and low voltage circuit breakers


facilities for metal based components

(copper and aluminum) such as operating

mechanism, enclosures, conductors,

contacts, etc. Our focusOur focus

Circuit breakers manufacturing represents an attractive opportunity within KSA


Circuit breakers types

Source: Eaton, IEEE, Copper Bussmann, Saudi Aramco analysis

Magnetic

Uses solenoid coil to provide force needed to open the contacts.

Spring

Utilizes spring actuation to open and close contacts. Used in low, medium & high V applications.

Based on medium of operation Based on actuating mechanism

Vacuum

Vacuum is used as the arc quenching medium. Offers the best insulation medium.

SF6

Current carrying contacts operate in Sulphur hexafluoride gas.

Focus is on low and medium voltage circuit breakers

Circuit breakers can be classified based on the medium of operation or actuation mechanism used to control them



227

28

116 132 138

30 32

127

247

121

258 269

3127

2019 2021

421

2020

403386

2018

370

4%

2022

439

237

Market demand is expected to grow at ~4% annually, driven by demand from Utilities, Oil and Gas and other manufacturing industries

Low Voltage High VoltageMedium Voltage

Value(US$ million)


Forecasted demand for circuit breakers in Saudi Arabia is estimated to reach ~US$440 million by 2022



323354

370

338

439403 421

308

386

370

678

2018

5%

2019

709775

810

20222020

741

2021

Rest of GCC

Saudi Arabia

KSA market demand is expected to be roughly 55% of the overall GCC demand for circuit breakers

Value(US$ million)


Forecasted demand for circuit breakers in the GCC is estimated to reach ~US$810 million by 2022


Opportunities

1. Opportunities to custom design and engineer circuit breakers for low and medium voltage applications for KSA customers

2. Manufacture copper alloys to meet the specifications needed for circuit breaker components

3. Develop manufacturing facilities for conductors, contacts, operating mechanism, and enclosures

4. Establish facilities for final manufacturing of low voltage circuit breakers

5. Establish facilities for final manufacturing of medium voltage circuit breakers made to final customer specifications

6. Establish world scale testing facilities (e.g. Vacuum Interrupter Predictive Testing)

7. Limited opportunities further expand:

– Distribution

– Refurbishment

– Maintenance

Time to maturity1 Medium term Medium term Short term Short term Short term

Input materialsComponents manufacturing


Sales and after-sales support

Design





Table of content











• Smart Meters





Potential to develop facilities to manufacture and test auxiliary, digital and contactor relays within KSA


facilities for relays components such as contacts, frames and armatures as well as DP Switches, circuits and microcontrollers among others

In protective relays, several opportunities emerge for SMEs across all steps of the value chain


Relays types and applications

Source: Technavio, Manufacturers, Saudi Aramco Analysis

• Used for control and protection of circuits in power stations and industrial installations

• Characterized by simple construction, high degree of reliabilityAu

xil

iary

• Computer-based system with software-based protection for the detection of electrical faults

• Includes many protection functions in one unit, as well as providing metering, communication, and self-test functions

Mic

ro-

pro

ce

ss

or

• Electrically controlled relay used for switching electrical circuits

• Widely used to control electric motors

Co

nta

cto

r

Relays are protective devices for electrical circuits and consist of three primary types


General purpose relay

Contactor

Source: Technavio, Manufacturers, Saudi Aramco Analysis

Relays subtypes

Au

xil

iary

Mic

rop

roc

es

so

r

Relays products mainly differ in the maximum amount of voltage that theapplication can handle and if the contact is normally open (NO) or closed (NC)

Most widely used

Trip and lockout relays Time-lag relays

Co

nta

cto

r

Trip circuit

Microprocessor or digital relay

Commonly used relays are of three types: microprocessor, contactor and auxiliary relays


Source: Icon Group, Technavio Global protective relays report, Saudi Aramco analysis

60 62 64 65 67

50 52 53 55 56

2020

117

2018

111 114

2019

3%

124

2021 2022

120

Rest of GCC

Saudi Arabia

KSA market demand is expected to be around 54% of the overall GCC demand for protective relays

Value(US$ million)


Forecasted GCC demand for relays is expected to grow at 3% annually to reach US$124 million by 2022


Opportunities

1. Localization potential to customize product

design to meet technical

requirements

2. Localize production of steel, copper to specifications and initiate production of Silver Cadmium Oxide and Silver Palladium

3. Localization opportunity for relays components such as contacts, frames and armatures as well as DP Switches, circuits and microcontrollers among others

4. Opportunity to set up final manufacturing and testing facilities to produce auxiliary, digital and contactor relays within KSA

5. Limited, since after-sales activities such as distribution have already been localized

Time to maturity1 Short term Long term Medium term Short term Short term

Input materialsComponents production


Distribution and After-sales Design



The relays value chain has potential for localization across input materials, components and final manufacturing & testing


Table of content











• Smart Meters

Saudi Aramco: PublicSource: Saudi Aramco analysis


After sales

SMEs to support the following after-sales services including:– System parts integration– Installation and testing– Monitoring and maintenance– Upgrades, and spares


Manufacturing

Potential to establish manufacturing facilities in the Kingdom focused on industrial

UPS manufacturing

Our focus

UPS manufacturing for industrial applications represents an attractive opportunity for SMEs within KSA


UPS types

Source: Manufacturers, Saudi Aramco analysis

Types Characteristics Benefit / limitations Application

Standby • 0 - 0.5 kVA range

• Low cost, high efficiency, compact

• 2 kVA max rating

Residential and computer applications

Line Interactive• 0.5 – 5 kVA range • High reliability, efficiency,

voltage conditioning

• 5 kVA max rating

Commercial and retail applications

Standby Ferro• 3 – 15 kVA range • Good voltage conditioning, high

reliability

• Low efficiency

Commercial and retail applications

Double Conversion

• 5 – 5000 kVA range • Good voltage conditioning

• Low efficiency and expensive under 5kVA

Industrial applications

Delta Conversion

• 5 – 5000 kVA range• Newest technology with good

voltage conditioning, high efficiency

• Expensive under 5kVA

Industrial applications

Not Exhaustive

Wid

ely

used

Double and delta conversion are the most widely used industrial UPS types in the Kingdom


19%60%

21%

Source: Technavio Report (2016), Saudi Aramco analysis

By industry (GCC, 2016, US$ millions)

Power

OthersOil and Gas

By country (GCC, 2016, US$ millions)

Oil and Gas and Power sectors make up

40% of the

demand in GCC

Market segmentation

54%

46%

KSA makes

up ~46% of

the overall GCC market for industrial UPS

KSA Rest of GCC

GCC demand for industrial UPS is ~ US$ 260 million, with Oil and Gas and Power sectors making up ~40% of the demand


Source: Frost and Sullivan, Saudi Aramco analysis

146161

177194

213

2022

10%

2019 20212018 2020

KSA demand is expected to grow at ~10% annually, driven by demand growth from Utilities, Oil and Gas and other manufacturing industries

Value(US$ million)


Industrial UPS forecasted demand in Saudi Arabia is estimated to reach ~US$213 million by 2022


Source: Frost and Sullivan, Saudi Aramco analysis

146 161 177 194 213

170185

202220

240316

454

2021 2022

414

2020

9%

346

2018

378

2019

Saudi Arabia

Rest of GCC

KSA market demand is expected to be roughly 46% of the overall GCC demand for UPS

Value(US$ million)


Industrial UPS forecasted demand in GCC is estimated to reach ~US$ 454 million by 2022


Opportunities

1. Design facilities to customize industrial UPS to customer needs and specifications

2. Manufacture copper, ABS rubber, polypropylene steel to meet the specifications needed for components

3. Manufacturing facilities in the Kingdom focused on:

– Lead acid batteries

– Inverters

– Rectifiers

– Panels

4. SMEs to perform final manufacturing, system parts integration and testing of UPS

5. Opportunities to provide services such as installation, inspection and maintenance of UPS and its components

Time to maturity1 Medium term Medium term Short term Short term

Input materialsDistribution and after-sales servicesDesign Manufacturing




Table of content











• Smart Meters




Manufacturing After Sales

Potential to establish manufacturing facilities in the Kingdom:

– Focused on lead acid batteries

– Ni Cd and Lithium Ion based batteries

Establish facilities to perform testing and

maintenance services such as:

– Acid filling

– Battery acceptance testing

– Specific gravity testing

– Terminal corrosion inspection

– Connection resistance testing

– Battery voltage testing

– Cleaning terminals and surfaces

Our focus

Batteries manufacturing for industrial equipment represents an attractive opportunity within KSA


Industrial battery types

1. Secondary batteriesSource: Manufacturers, Saudi Aramco analysis

Type Anode (A), Cathode (C) and Medium (M)

Characteristics Applications

Lead - Acid• A: Lead• C: Lead Dioxide• M: Sulfuric acid

• Rechargeable1

• Large power to weight ratio and low cost

Most widely in automotive, industrial applications

Lithium Ion

• A: Lithium

• C: Graphite

• M: Li salt in solvent

• Rechargeable1

• Large power to weight ratio, higher costs

Widely used in electronics, power tools and electric vehicles

Nickel Cadmium / Nickel metal hydride

• A: Cadmium/ hydride

• C: Nickel oxide hydroxide

• M: Alkaline (Potassium Hydroxide)

• Rechargeable1

• Low power, high discharge rates

Emergency lighting, standby power, and Uninterruptible Power Supplies (UPS)

Not Exhaustive

Fo

cu

s

Industrial batteries are secondary or rechargeable batteries and consists of three main types


KSA expected market size evolution (US$ million)

Source: Un Comtrade, Euromonitor, Saudi Aramco analysis

110

171

121

2022

3365%

304

2019

276

320

2021

290

2018 2020

127

180

105

208198

116

189


OthersLead acid

Value(US$ million)


Forecasted demand for industrial batteries in Saudi Arabia is estimated to reach ~US$336 million by 2022


Source: UN Comtrade, Euromonitor, Saudi Aramco analysis

788

336

592

958

2021 2022

320

912

2020

290 304

564512 537

276

5%

827

622

2018

869

2019

Saudi ArabiaRest of GCC

KSA market demand is expected to be roughly 35% of the overall GCC demand for batteries

Value(US$ million)


Forecasted demand for industrial batteries in GCC is estimated to reach ~US$ 960 million by 2022


Opportunities

1. Design facilities to customize industrial batteries to customer needs and specifications

2. Manufacture lead, copper, synthetic rubber, polymers to meet the specifications needed for battery components

3. Manufacturing facilities in the Kingdom:

– Focused on Lead acid batteries

– Focused on Ni Cd and Li based batteries

4. Distribution already localized with limited additional opportunities

5. Facilities to test and maintain:

– Acid filling

– Battery acceptance

– Specific gravity

– Terminal corrosion

– Connection resistance

– Battery voltage

– Cleaning terminals


Input materialsComponents, and final manufacturing

After-sales servicesDesign Distribution





Table of content











• Smart Meters

Saudi Aramco: PublicSource: Saudi Aramco analysis



Establish manufacturing facilities in the Kingdom to perform systems part integration:

– Inverters for industrial applications such as UPS

– Inverters for solar Photovoltaic applications

Establish manufacturing facilities in the Kingdom:

–Electronic components such as microcontrollers

–Enclosures and terminals

Inverters manufacturing represents an attractive opportunity within KSA


Widely used inverter types

Source: Manufacturers, Saudi Aramco analysis

Not Exhaustive

Pure sine wave

Highly efficient and suited for appliances requiring prolonged

use

Solar photovoltaic off-grid

Draws DC energy from batteries charged by

photovoltaic cells

Solar photovoltaic grid connected

Matches phase with a utility-supplied sine

wave

Pure sine wave, Solar Photovoltaic off-grid and grid connected inverters are the most widely inverters in Saudi Arabia


Source: Icon, Saudi Aramco analysis

856 878 901 925 949

2022

3%

2019 20212018 2020

Value(US$ million)


Forecasted demand for inverters in Saudi Arabia is estimated to reach ~US$ 950 million by 2022


Source: Icon, Saudi Aramco analysis

856 878 901 925 949

680 698 716 735 754

20212018 2019 2022

1,536

3%

1,660

2020

1,7031,6181,577

Saudi ArabiaRest of GCC

Value(US$ million)


Forecasted demand for inverters in GCC is estimated to reach ~US$ 1.7 billion by 2022


Opportunities

1. Design facilities to customize inverters to customer needs and

specifications

2. Manufacture silicon, copper, aluminum, polymers to meet the specifications needed for components

3. Manufacturing facilities in the Kingdom:

– Electronics including microcontroller

– Enclosures and terminals

4. Final manufacturing and system parts integrationfacilities for inverters in the Kingdom

5. Facilities to install, and test inverters

Time to maturity1Medium term Medium term Medium term Short term Short term

Input materials Components After-sales servicesDesignFinal manufacturing





Table of content











• Smart Meters



Raw materials Maintenance & Repair

SMEs to localize raw material production including steel, copper and aluminum according to specifications

SMEs opportunities to perform

maintenance and remedial services


Manufacturing

• Potential to establish facilities to manufacture low voltage motors components, such as terminal boxes, rotors, stators etc. and final manufacturing of low voltage motors in the Kingdom

Our focus

Low voltage motors manufacturing offers several opportunities for SMEs across the value chain


Motor types

Source: IEEE, Manufacturers, Saudi Aramco analysis

Motor types

AC Motor

Single phase Three phase

Synchronous

Asynchronous

Synchronous

Asynchronous / Induction

Wound rotor

Squirrel-cage

Series

Shunt

Compound

DC Motor

FocusWound rotor

Squirrel-cage

Not Exhaustive

Low voltage motors operate below 1,000 V and deliver power less than 1,000 kW

Three phase asynchronous motors are the most widely used low voltage motors in the Kingdom



Volume

(‘000 Units)

Market size

(US$ Million)$xxx59 63 67 70 76

647631616601585

+3%

20222020 202120192018


Forecasted demand for low voltage motor in KSA is expected to reach US$76 million or 647K units by 2022



KSA market demand is expected to be roughly ~60% of the overall GCC demand for low voltage motors

Volume

(‘000 Units)

Market size

(US$ Million)$xxx99 106 113 119 130

585 601 616 631 647

394 404 415 425 436

979

2018

+3%

1,084

2022

1,057

2021

1,031

2020

1,005

2019

Saudi Arabia

Rest of GCC


Forecasted demand for low voltage motor in GCC is expected to reach US$130 million or ~1.1 million units by 2022


Opportunities

1.Establish facilities for design and

detailed engineering of low voltage motors in the Kingdom

2. Manufacture copper, stainless and carbon steel, aluminum, iron, intermediate elastomers and coatings to meet the specifications needed for components

3. Develop manufacturing facilities for terminal boxes, fans, stators, bearings and rotors and final manufacturing and factory testing of motors

4. Provide operational and after sales support including

– Inspection

– Maintenance

– Repair & overhaul

Time to maturity1 Short term Medium term Short term Short term

Input materials ManufacturingSales and after-sales services

Design





Table of content











• Smart Meters



Raw materials Sales and installation

Potential to partner with suppliers to

localize production of steel, aluminum

and other metals to required

specifications

Potential to develop SMEs to perform

testing, certification and installation services



Manufacturing

Potential to establish facilities to manufacture metallic and non-metallic conduits and fittings locally

Our focus

Several opportunities emerge for SMEs across the conduits and fittings value chain

Saudi Aramco: PublicSource: Manufacturers, Saudi Aramco analysis

Types of conduits and fittings

Meta

llic

No

n-

meta

llic

Fle

xib

le

Liquid-tight non-metallic conduit

Rigid metal conduit(RMC)

Galvanized rigid conduit (GRC)

Electrical metallic conduit (EMT)

Polyvinylchloride (PVC) conduit

HD polyethylene (HDPE) conduit

Liquid-tight metallic conduit

Flexible metallic tubing and conduit

Not Exhaustive

Fiberglass-reinforced epoxy (FRE) conduit

• Standard conduit size usually

ranges from ½ to 8 inches

• Conduits and fittings for Oil and Gas applications

are rated for applications from 5 V up to 69 kV

Conduits and fittings are classified by material used and their mechanical properties


Source: UN Comtrade, Icon, Saudi Aramco analysis

202

2021

2%

2022

197193

20192017

188

2020

184

2018

179

848288 90 92

86

98 100 103 105 108 110

Rest of GCC

Saudi Arabia

KSA market demand is expected to be 55% of the overall GCC demand for conduit circuits estimated to be ~US$ 202 million

Value(US$ million)


Forecasted demand for conduits and fittings in KSA is estimated to reach ~US$ 110 million by 2022


Opportunities

1. Partner with suppliers to localize production of steel, aluminum, and other metals to specifications

2. KSA is a large net exporter HD polyethylene and polyvinylchloride, enabling localization

3. Opportunity exists to fully localize the manufacturing of conduits and fittings within KSA, according to industry standards and customer specifications

4. Potential to develop SMEs to perform testing, certification and installation services in the Kingdom

Time to maturity1 Short - Medium term Short term Short term

Raw materials Manufacturing Sales and after-sales services


1. Subject to change depending on speed of technology maturity and market conditions. Short term :2 -3 years, Medium term:4-5 years, Long term> 5 yearsSource: Saudi Aramco analysis56

Multiple opportunities exists to support localization of conduit fittings manufacturing


Table of content











• Smart Meters



Sensors & devices Infrastructure and platforms

Potential to manufacture smart meters

as well as other components essential to

smart grids such as line sensors, FACTS

and current limiters

Potential market localize development of

components for connectivity (optical

fibers, network switches etc.) as well as

key servers and storage devices

Source: Saudi Aramco Analysis

Manufacturing/investment Opportunities

Applications Services

Potential to develop software and

applications tailored to smart grids such

as VPP, DMS and TMS

Potential to offer value added services

for smart grids such as energy

management, monitoring and control and

real time billing

Several opportunities exist for SMEs across manufacturing and support functions in smart grids and meters


Smart grid components


Core Smart Grid

components

Transmission Distribution Costumer

• Transmission line sensors

• FACTS devices

• Short circuit current limiters

• Telecom / IT infrastructure

• Cyber security

• Intelligent electronic devices (lEDs)

• Phasor measurement technology

• Enterprise back-office system (egGIS,outagemgmt,...)

• Distribution automation

- SCADA and DMS system

- Feeder reclosers and relays

- Intelligent reclosers

- Remotely controlled switches

- Short circuit current limiters

- Voltage and VAR control on feeders

- Intelligent Universal Transformers

- Telecom / IT infrastructure

• Smart Metering Infrastructure

• Integrated distributed

• generation

• Building automation

• Grid-ready appliances and devices

• Vehicle-to-grid two-way power converters and energy storage

DistributionControl Center

Smart meter

Smart building

E-v ehicle

Smart grids technology encompasses several core constituents across transmission, distribution and customers


• Conventional meters measures the amount of energy flowing through then and must be read manually, but smart meters not only are read automatically but also gives specific information on how much was consumed, when and at what tariff

• Smart metering also offers:

- Digital technology: Meter can store larger amounts of data until collected, and can also be reprogrammed or re-configured remotely

- Communication: Two directions flow, providing consumption data to operator and customer (special home devices) and enables operator to reconfigure it remotely

- Control: Possibility to configure and adjust the meter remotely

- Better operation of networks: Assists operator by providing detailed operating data from the ends of the network. Outages or leakages can be detected faster and system recovery monitored, minimizing inconvenience to customers

Smart grid & metering infrastructure development

Kunden

Trafo / Datenkonzentrator

Stadtwerke /Energieversorger

Datenfunkstrecke /Back-Bone-Netz

• Smart meters will allow new contract types for customers:

- Demand response: Supports new time of use rates

- Dynamic tariffs: Consumers can react to price signals

- Load management: Allow energy company to remotely adjust the customer’s load

- Energy services: Provide more detailed consumption data to deliver new and innovative services

- Internal data billing: Instead of estimated bill

- Prepayment

- Prosumers: Facilitates the rol of consumers to become energy producers


Smart metering is the pillar of the system to provide consumption information to the whole electricity value chain


1. Other components include Source: Expert interviews, A.T. Kearney IoT model, Saudi Aramco analysis

47 74 77 93123 135

165195

227287

30 3138

5055

67

80

93

117

20252023

66

2020

173

20222021

404

320

232

191

275+22%

19

2019

131

20242018

108

2017

104

2016

Spend on smart metersSpend on other components1

Spend($mm)

Smart meter sales(mm units)

0.4 0.6 0.6 0.7 0.9 1.0 1.3 1.5 1.7 2.2


The market for smart meters and components is expected to grow at a rapid pace reaching $400 mm in 2025


Opportunities

1.Manufacture smart meters in

KSA, in collaboration with global leaders

2.Manufacture key additional

components to stimulate adoption of smart grids such as line sensors, FACTS, RTUs etc.

3. Partner with leading IoT and wireless technology providers to setup assembly and manufacturing facilities for communication and storage devices

4. Partner with service providers to develop upgrades to infrastructure and platforms in-country through the setup of R&D hubs

5. Partner with leading players to localize parts of future software development e.g. SCADA, VPP, DMS, TMS

6. Localize cloud platforms e.g. Google cloud, Microsoft Azure and Amazon AWS in KSA

7. Offer value added services for smart grids and meters e.g. energy management, real time billing, monitoring and control etc.

Time to maturity1 Medium term Medium term Short term Short term

Infrastructures & Platforms

Applications servicesSensors & Devices



chain

Localization potential exists at most stages of the smart meters value


Please direct all inquiries to:

Khaled Al-Ghadhban

Business Development Engineer

Saudi Aramco

[email protected]

Office number: +966-13-8741417

We invite you to engage with the iktva program and grow your business in Saudi Arabia

Gilroy Dolor

Strategic Procurement

Saudi Aramco

[email protected]

Office number: +966-13- 8741533

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