Riyadh - Mubasher: The Saudi minister of energy said on Monday that a new Saudi company will be established to buy energy from all suppliers.

Khaled Al Falih told reporters on the sidelines of the Saudi Arabia Renewable Energy Investment Forum, which is held in Riyadh, that the company will be the only one to buy electricity for the grid, and that it will be completely independent from Saudi Electricity Company (SEC).

The minister that the legal work and forming the company’s board of directors is currently undergoing, noting that the company will have the sufficient capacity to enter long-term or 20-25 year contracts.

Al Falih that the company will coordinate with the ministry of energy, industry and mineral resources, which lays out the general policies of the electricity sector.

Al Falih also announced that SEC's power sector will be separated from the company and privatised, while SEC will continue to specialise in the transfer and distribution of electricity.

SEC will remain the backbone of the electricity sector in Saudi Arabia, the minister indicated.