Saudi Electricity (SEC) has signed contracts worth 1.18 billion riyals ($316.53 million) for unnamed companies to build two electricity substations to help meet rising demand in the kingdom, the state-controlled utility said on Monday.

One of the substations, which is expected to be completed in 28 months, will be built in Dammam in eastern Saudi Arabia. The other in Taef, western Saudi Arabia, is expected to be in operation in about 30 months, SEC said in a statement.

Saudi Electricity has an $80-billion investment plan to increase its power generation capacity by 30,000 megawatts by 2018 to meet power demand which is growing at around 8 percent a year.      

Substations do not produce electricity but play a key role in power distribution networks as voltage transformers. - Reuters