The Saudi Electricity Company (SEC) has awarded the local Al-Toukhi a SR464m ($124m) contract to install a new 380kV substation.

The local contractor will provide and install the substation at Ashaliyah, located in the central area of the kingdom.

The projects are part of the kingdom’s efforts to expand and upgrade its electricity infrastructure as it seeks to cope with its rapidly growing population and economy. In July, the local Alfanar Construction was awarded contracts worth SR1.5bn ($400m) for three transmission and distribution (T&D) contracts in the kingdom.

The largest contract was the SR716m T&D deal from the Saudi Water Conversion Corporation (SWCC) to build three substations for the 3,100MW Yanbu 3 power plant. The substations will supply power from the plant to SWCC pumping stations.

Alfanar was also awarded two contracts from SEC, worth a total of SR793m, to install 390kV underground cables in the Western province. The cables will link the Jeddah central substation and the Jeddah al-Faisaliyah substations.

It is estimated that the Saudi Arabia’s peak power demand will rise from the 48,367MW in 2011 to 75,000MW by 2020. With the current installed generation capacity in the kingdom less than 60,000MW, it is vital the kingdom’s power and electricity clients are able to tender and award the planned schemes on time.