Saudi Electricity Company (SEC) has awarded about $906 million in contracts for new 380 kV bulk supply point (BSP) substations and accompanying overhead transmission lines (OHTLs) in Afif, central Saudi Arabia, the power utility has said.
The deal includes two high-capacity BSP substations—Afif 1 and Afif 2—and three OHTL projects, intended to integrate the country’s expanding portfolio of renewable energy assets into the national grid.
The expansions form part of Saudi Arabia’s National Renewable Energy Program (NREP) driven by the Ministry of Energy and managed by the Saudi Power Procurement Company (SPPC), which in June issued its sixth round of project requests targeting a combined capacity of 4,500 MW.
SEC confirmed that Al Gihaz Contracting Company has secured a SAR 960 million ( $256 million) contract for the Afif 1 BSP substation, while Al Babtain Contracting Company clinched the SAR 1.2 billion ($320 million) award for the Afif 2 BSP project.
SEC had solicited bids earlier as part of a broader transmission sector overhaul. A previous round in March included more than 15 BSP projects. In July 2024, SEC announced plans for over 16 BSP projects totalling more than SAR 8 billion in investments.
Under Vision 2030, Saudi Arabia aims to decrease its reliance on oil-fired electricity generation, currently around 42% of its 110 GW peak demand by some estimates, while raising renewable fuel share and gas-fired infrastructure to eventually hit 50/50 balances with renewables and gas by decade’s end.
The Afif project strengthens the grid’s ability to absorb renewable power from upcoming solar and wind plants, including SPPC’s sixth round, effectively advancing NREP’s 4.5 GW target. Earlier bid rounds featured major infrastructure builds in central areas such as Mawqaq, Kharj and Hisu, across 380 kV and 132 kV networks.
SEC’s capital expenditure cycle, which reportedly rose to SAR 60 billion ($16 billion) in 2024, has already delivered an 18% revenue growth to nearly SAR 88.7 billion.
