Saudi Power Procurement Company (SPPC) has announced that consortiums led by ACWA Power and Abu Dhabi’s TAQA have secured contracts for four major power plants in Saudi Arabia, collectively generating 7.2 gigawatts (GW) of electricity.
The power projects, which include the Rumah I and II and Al Nairyah I and II plants, are crucial components of the kingdom’s efforts to meet its growing electricity demand and diversify its energy sources.
SPPC, responsible for procuring power from independent producers (IPPs) under Saudi Electricity Regulatory Authority guidelines, confirmed the deal, which aligns with the government’s broader energy strategy.
The awarded projects are part of Saudi Arabia’s energy mix plan, supervised by the Ministry of Energy. This plan aims to diversify power generation through a balanced approach, targeting a 50-50 split between renewable energy and natural gas by 2030. The kingdom also seeks to reduce its reliance on liquid fuels for electricity generation while advancing technologies like carbon capture and gas turbine manufacturing localization.
The consortiums awarded the projects include ACWA Power, in partnership with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO), who will develop the 1.8GW Rumah I and Al Nairyah I plants. SEC serves as the managing and technical member in this consortium, while ACWA Power and KEPCO provide additional technical expertise.
In a separate bid, a consortium led by Taqa, with Jera of Japan and Saudi contractor Al Bawani, secured the contracts for Rumah II and Nairyah II, also with a capacity of 1.8GW each. Taqa will oversee the technical and management aspects of these projects, with Jera and Al Bawani playing key roles in the development.
SPPC said that the new plants are expected to play a key role in Saudi Arabia’s green energy transition, supporting the Saudi Green Initiative. This initiative aims to achieve net-zero greenhouse gas emissions by 2060 through the Circular Carbon Economy framework. The plants will also incorporate the latest Class H/J Gas Turbines, enhancing operational efficiency and enabling carbon capture technology implementation.
With a combined investment of around SAR 30 billion (USD 8 billion), the projects are expected to supply electricity to approximately three million residential units annually.
SPPC will enter into 25-year power purchase agreements (PPAs) with the project companies under a Build, Own, Operate (BOO) structure.
