Saudi-based ACWA Power has announced the signing of Power Purchase Agreements (PPAs) for two large-scale Combined Cycle Gas Turbine (CCGT) power plants.
The projects, valued at approximately SAR 15 billion ($4 billion), are in line with the Kingdom’s drive to optimize its energy mix and support Vision 2030.
The agreements, signed with the Saudi Power Procurement Company (SPPC), cover the development of the Rumah-1 and Al-Nairyah-1 power plants. Rumah-1 will be located in Riyadh Province, while Al-Nairyah-1 is set for Eastern Province. Each plant will boast a production capacity of 1,800 MW.
ACWA Power holds a 35% ownership stake in both projects, with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO) as key partners. The projects cover development, financing, construction, ownership, and a 25-year operational phase.
The projects form part of Saudi Arabia’s broader energy mix plan, which is led by the Ministry of Energy. The initiative aims to meet growing electricity demand, reduce reliance on liquid fuels, and achieve an optimal energy mix where gas and renewable energy each account for 50% of electricity production by 2030.
In line with the Saudi Green Initiative, the projects incorporate readiness for carbon capture technologies.
They also contribute to localising gas turbine manufacturing, reflecting Saudi Arabia’s focus on sustainability and technological advancement. These efforts align with the Kingdom’s goal to achieve net-zero greenhouse gas emissions by 2060 under the circular carbon economy framework.
The Rumah-1 and Al-Nairyah-1 power plants are key in advancing Saudi Vision 2030. By diversifying energy sources and enhancing system reliability, they reinforce the Kingdom’s commitment to creating a sustainable and efficient energy infrastructure while attracting foreign and local investments to the sector.
The announcement follows Saudi Arabia’s recent strides in renewable and gas-powered energy, and are set to play a key role in delivering reliable and cleaner energy to support the Kingdom’s development goals.
