The Kingdom of Saudi Arabia (KSA) is reforming its electricity sector with the objective of introducing a Competitive Electricity Market (CEM). The Competitive Electricity Market shall aim to improve efficiency, transparency of the sector through continuous competitive price discoveries and enhance participation of all market players and to sustainably move from a regulated electricity market with the vertically integrated utility towards a competitive electricity market. Principal Buyer or Saudi Power Procurement Company (SPPC) has been granted the license to facilitate the transitions and the major changes in the sector. 

Principal Buyer has a central role in facilitating market transition as a “Transformation Agent” and Its governance is a key enabler. It needs give key Government bodies that have the target to transform the market the possibility to steer SPPC in the right direction and integrate relevant stakeholder views. 

The new market design will be measured against the objective to increase welfare by removing operational inefficiencies and large subsidies. 

To build up the National Renewable Energy Program (NREP), KSA Vision 2030 has set an initial target of generating 9.5 GW of renewable energy projects up to 2023. To ensure the successful implementation of NREP, Principal Buyer has pivotal role in the whole process and shall be counterpart of all Power Purchase Agreements of RE power Projects. PB shall procure all energy from these RE power projects and make payments up to the useful technical and contractual life of 20 to 25 years of the projects. PB shall perform all obligations and responsibilities to be provided in the PPAs .