Saudi Arabia's private owned Shuaiba Water and Electricity Company (SWEC) has started operating its Shuaiba-3 plant at full capacity, a report said.

The plant has capacity to generate 900 megawatts of electricity, and 800,000 cubic meters of desalinated water per day,  pan-Arab newspaper Al-Hayat reported.

The plant burns crude oil for fuel, according to the website of state utility the Saudi Electricity Company. The kingdom has increased burning of crude this year to keep new oil wells pumping and to produce cleaner power.

The plant will supply the grid in the western region, feeding the cities of Mecca, Jeddah and Taif.

The kingdom has faced costly power outages of up to five hours a day in the industrial zone of the commercial hub of Jeddah.

"The continued increase in population density in the kingdom lead to the increasing need for the consumption of electricity and desalinated water," Al Hayat reported Yahya Al Yahya, head of SWEC's board of directors, as saying. - Reuters