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The Saudi Power Procurement Company (SPPC) has announced the successful bidders for four major power projects in the kingdom, with a total capacity of 7,200 MW. The winning consortiums are led by global utilities — International Company for Water and Power Projects (Acwa Power) and Abu Dhabi energy group Taqa — marking a significant milestone in Saudi Arabia’s energy sector.
The projects, Rumah I and II and Al Nairyah I and II, are part of the country’s strategic energy mix plan, supervised by the Ministry of Energy. This initiative aims to diversify energy sources, reduce reliance on liquid fuels, and contribute to the Kingdom’s goal of achieving a 50% share of both renewable energy and gas in electricity generation by 2030.
SPPC, a key government entity responsible for preparing preliminary studies, tendering, and awarding Independent Power Projects (IPPs), also highlighted that the projects align with Saudi Vision 2030. The Ministry’s efforts focus on localizing gas turbine manufacturing and incorporating carbon capture technologies into the energy system.
The Rumah I and Nairyah I projects, each with a capacity of 1.8 GW, will be executed by a consortium of Saudi Electricity Company (SEC), Acwa Power, and Korea Electric Power Corporation (Kepco), with SEC serving as the managing and technical member. The Rumah II and Nairyah II plants will be developed by a consortium led by Abu Dhabi National Energy Company (Taqa), Japanese power generation company Jera, and Saudi contractor Al Bawani, with Taqa taking the lead role.
The total investment for these projects is estimated at SAR 30 billion ($8 billion), with each project set to be delivered on a Build, Own, and Operate (BOO) basis under a 25-year power purchase agreement. Once completed, the plants are expected to provide power to around three million residential units annually.
These projects are also part of the Saudi Green Initiative, which aims to achieve net-zero greenhouse gas emissions by 2060 through the circular carbon economy approach, contingent on technology advancements. The plants will feature the latest Class H/J Gas Turbines for maximum efficiency in combined-cycle operation, further supporting the kingdom’s transition to a sustainable energy future. |
