SEC Reports 18% Revenue Growth and SAR60 Billion Investment

The Saudi Electricity Company (SEC) announced on March 5, 2025 that its total operating revenues reached SAR88.7 billion in 2024, an 18% increase from SAR75.3 billion in 2023, alongside record capital investments of SAR60 billion. The results, released through the Saudi Press Agency, underline the scale of the transformation underway in the Kingdom’s power sector as electricity demand rises and the national grid expands to serve a rapidly growing economy.

What does it take to power a nation that is simultaneously building new cities, expanding industry and hosting millions of pilgrims each year? For SEC, the answer lies in sustained investment, regulatory stability and a clear strategic direction tied to Saudi Vision 2030. The company’s 2024 performance reflects higher power generation, an expanding regulated asset base and growing revenues from project development and management, including the construction of power plants and transmission lines for clients. The figures position SEC among the largest and most systemically important utilities in the region, at a time when electricity has become central to the Kingdom’s economic diversification agenda.

Context and Background

Why do these results matter beyond the balance sheet? SEC is the principal electricity provider in Saudi Arabia, responsible for generation, transmission and distribution across a territory that spans deserts, mountains and dense urban corridors. Its financial health therefore has direct implications for households, businesses, hospitals, data centres and industrial complexes nationwide. The 2024 results arrive as the Kingdom pursues an unprecedented build-out of energy infrastructure under Vision 2030, including renewable energy projects, grid interconnections and smart grid technologies.

The company reported a net profit of SAR6.9 billion for 2024, compared with SAR10.2 billion in 2023. That decline is attributable to a one-time expense of SAR5.7 billion arising from the final settlement of long-standing disputed amounts related to historical discrepancies in fuel quantities, pricing, handling costs and electricity tariffs. Excluding this non-recurring item, SEC’s adjusted net profit stood at SAR12.1 billion, up from SAR11.1 billion in 2023, an increase of 8.9%. The adjusted figure provides a clearer view of the underlying business, which continues to expand on the back of higher recognised revenue requirements, a 10% growth in regulated asset bases to SAR231 billion, increased power generation revenues, a growing customer base and improved operational efficiency.

These developments did not happen in isolation. They reflect a regulatory framework designed to attract long-term investment in power infrastructure while keeping service quality high. SEC Acting CEO Eng. Khalid Al-Ghamdi described 2024 as “a new phase of accelerated growth, operational excellence, and strategic investment in the future,” noting that the company achieved record-breaking revenues and executed the largest capital investments in its history. His comments, carried in the official release, frame the year as a turning point rather than a single strong performance.

Key Details

What exactly did SEC deliver in 2024? Capital expenditures surged to an all-time high of SAR60 billion, a 44% increase from 2023. These funds were directed toward power infrastructure expansion, smart grid enhancements, generation efficiency improvements and service reliability upgrades. The scale of this spending matters because electricity networks are long-lived assets: investments made today determine the reliability, resilience and sustainability of supply for decades. SEC also maintained a strong financial position, securing SAR57.2 billion in financing during the year through sukuk issuances, local and international loans, and export credit agency-backed facilities to support its long-term growth strategy.

On the renewable energy front, SEC connected 6.8 GW of renewable capacity to the grid by year-end, is developing new projects with a combined capacity of 27.3 GW, and has initiated tenders for an additional 33.2 GW of renewable energy projects. To enhance grid stability, the company commissioned Saudi Arabia’s first battery energy storage system (BESS) in Bisha with a capacity of 500 MW, and advanced five additional storage projects totalling 2,500 MW. Regional grid interconnections also progressed, including the 3 GW Saudi-Egypt interconnection project and feasibility studies for new links with Italy, Greece and India.

Customer-facing metrics improved as well. Customer satisfaction reached 82.3%, the System Average Interruption Duration Index (SAIDI) improved by 17%, and the System Average Interruption Frequency Index (SAIFI) fell by 19%. The average service connection time for new customers decreased by 9%. SEC also automated all distribution substations in the holy sites and integrated the Makkah Distribution Control Center with the fibre optic network, helping ensure uninterrupted service, particularly during the Hajj season. Can any modern economy function without reliable electricity? These operational gains show that reliability and customer experience are being treated as strategic priorities, not afterthoughts.

International and Regional Impact

How does a national utility’s performance resonate beyond its borders? SEC’s credit profile has strengthened in the eyes of global investors. Moody’s upgraded SEC’s credit rating from A1 to Aa3 with a stable outlook, while Fitch raised its rating from A to A+, aligning SEC’s credit profile with Saudi Arabia’s sovereign rating. These upgrades reinforce SEC’s position among the world’s leading power utilities and lower the cost of capital for future infrastructure projects. For international lenders and institutional investors, the ratings signal that Saudi Arabia’s power sector offers a stable, well-regulated environment for long-term participation.

The company’s regional interconnection agenda adds a further dimension. The 3 GW Saudi-Egypt interconnection project, alongside feasibility studies for links with Italy, Greece and India, points to a future in which Saudi Arabia exports electricity as well as hydrocarbons. Such links could allow the Kingdom to share surplus renewable generation, improve grid resilience and deepen economic ties with neighbours and partners across three continents. For a country positioning itself as a regional hub for clean energy, these projects are not technical curiosities; they are instruments of economic diplomacy and energy security.

Economic and Strategic Significance

Why should global observers pay attention to a utility’s annual results? Electricity is the backbone of economic diversification. Saudi Arabia’s industrial strategy, including mining, manufacturing, logistics and digital infrastructure, depends on abundant and reliable power. SEC’s SAR60 billion capital programme supports that demand while creating opportunities for contractors, equipment suppliers and technology providers. The expansion of regulated asset bases to SAR231 billion provides a predictable return framework that encourages continued private and public investment, while the growth in project development and management revenues shows SEC is monetising its engineering expertise beyond its core regulated business.

The company’s financing strategy further illustrates its strategic maturity. Raising SAR57.2 billion through sukuk, loans and export credit agency-backed facilities diversifies funding sources and reduces reliance on any single channel. The shift toward renewable integration, battery storage and smart grid technologies also aligns with global expectations for decarbonisation, without compromising the reliability that customers and industries require. In a region where power demand continues to rise, SEC’s ability to fund, build and operate at scale is a competitive advantage for the entire Saudi economy.

Vision 2030 Alignment

How does SEC’s 2024 performance connect to Saudi Vision 2030? The Vision calls for a diversified economy, a sustainable energy mix and world-class infrastructure, and SEC sits at the centre of all three. Eng. Khalid Al-Ghamdi said the company remains committed to supporting “the unprecedented transformation of the power sector in line with Saudi Vision 2030,” adding that the transformation presents exceptional growth opportunities underpinned by a robust regulatory framework and SEC’s strong financial and strategic position. He also emphasised enhancing energy security, supporting Saudi Arabia’s transition into a regional hub for clean energy, and delivering reliable, high-quality electricity services, with a focus on accelerating innovation, advancing digital transformation and improving operational efficiency.

Looking ahead, SEC’s pipeline of renewable projects, storage installations and cross-border interconnections positions the Kingdom to meet rising demand while reducing emissions and strengthening regional cooperation. The record revenues and capital investments of 2024 are not an endpoint but a foundation. As Saudi Arabia builds new cities, expands industry and hosts growing numbers of pilgrims and visitors, SEC’s role will only become more central. The company’s performance offers international audiences a clear signal: the Kingdom’s power sector is modernising at speed, with strong institutions, sound finances and a long-term vision guiding every megawatt.

20 Questions

Q1. What were SEC’s total operating revenues in 2024?

A1. SEC reported total operating revenues of SAR88.7 billion in 2024, an 18% increase from SAR75.3 billion in 2023, according to the company’s official announcement released via the Saudi Press Agency.

Q2. What was SEC’s net profit for 2024?

A2. SEC posted a net profit of SAR6.9 billion in 2024, compared with SAR10.2 billion in 2023. The decline reflects a one-time settlement expense rather than weaker underlying operations.

Q3. What caused the decline in net profit?

A3. The decline was due to a one-time expense of SAR5.7 billion from the final settlement of long-standing disputed amounts related to historical discrepancies in fuel quantities, pricing, handling costs and electricity tariffs.

Q4. What was SEC’s adjusted net profit?

A4. Excluding the non-recurring expense, SEC’s adjusted net profit reached SAR12.1 billion, up from SAR11.1 billion in 2023, representing an 8.9% increase that reflects stronger underlying performance.

Q5. How much did SEC invest in capital projects in 2024?

A5. SEC’s capital expenditures reached an all-time high of SAR60 billion in 2024, a 44% increase from 2023, directed toward infrastructure expansion, smart grids, generation efficiency and service reliability.

Q6. What drove the increase in revenues?

A6. Growth was driven by sustained electricity demand, increased power generation, expansion of regulated asset bases, a higher weighted average cost of capital return, and revenues from project development and management.

Q7. How large is SEC’s regulated asset base?

A7. SEC’s regulated asset bases expanded by 10% to SAR231 billion, providing a stable framework for returns and supporting continued investment in the national grid and related infrastructure.

Q8. How much renewable capacity was connected to the grid?

A8. By year-end 2024, 6.8 GW of renewable capacity was connected to the grid. SEC is also developing projects with a combined capacity of 27.3 GW and has tendered an additional 33.2 GW.

Q9. What is the Bisha battery storage project?

A9. SEC commissioned Saudi Arabia’s first battery energy storage system in Bisha with a capacity of 500 MW. It also advanced five additional storage projects totalling 2,500 MW to enhance grid stability.

Q10. What international grid interconnections is SEC pursuing?

A10. SEC is advancing the 3 GW Saudi-Egypt interconnection and conducting feasibility studies for new interconnections with Italy, Greece and India, supporting regional energy cooperation and potential electricity exports.

Q11. How did customer satisfaction perform in 2024?

A11. Customer satisfaction reached 82.3%. Service quality improved, with the average service connection time for new customers decreasing by 9% during the year.

Q12. What do SAIDI and SAIFI measure?

A12. SAIDI measures average interruption duration and SAIFI measures interruption frequency. In 2024, SAIDI improved by 17% and SAIFI fell by 19%, indicating more reliable electricity supply.

Q13. How much financing did SEC secure in 2024?

A13. SEC secured SAR57.2 billion in financing through sukuk issuances, local and international loans, and export credit agency-backed facilities, supporting its long-term growth strategy and capital programme.

Q14. What credit rating actions did SEC receive?

A14. Moody’s upgraded SEC’s credit rating from A1 to Aa3 with a stable outlook, while Fitch raised its rating from A to A+, aligning SEC’s credit profile with Saudi Arabia’s sovereign rating.

Q15. How did SEC support services during Hajj?

A15. SEC automated all distribution substations in the holy sites and integrated the Makkah Distribution Control Center with the fibre optic network, helping ensure uninterrupted service during the Hajj season.

Q16. What did SEC’s acting CEO say about 2024?

A16. Eng. Khalid Al-Ghamdi said 2024 marked a new phase of accelerated growth, operational excellence and strategic investment, with record revenues and the largest capital investments in SEC’s history.

Q17. How does SEC’s performance support Vision 2030?

A17. SEC supports Vision 2030 by expanding reliable power infrastructure, integrating renewable energy, advancing digital transformation and enhancing energy security, all of which underpin economic diversification and sustainable development.

Q18. What operational efficiencies improved SEC’s results?

A18. Improvements included lower maintenance and operating costs, higher net other income, improved collections, reduced zakat provisions, and increased equity-accounted earnings from independent power plants.

Q19. Why are SEC’s results significant for international audiences?

A19. They demonstrate the scale and stability of Saudi Arabia’s power sector, its strong regulatory framework, and the Kingdom’s progress in building a diversified, sustainable economy open to global investment.

Q20. What is SEC’s outlook for the coming years?

A20. SEC plans to continue record investment in renewables, storage and grid interconnections, supporting Saudi Arabia’s transformation into a regional clean energy hub while maintaining reliable, high-quality electricity services.