01 December 2024

Saudi Power Procurement Company (SPPC) has announced consortiums led by global utility majors – International Company for Water and Power Projects (Acwa Power) and Abu Dhabi National Energy Company (Taqa) – as winning bidders for the Rumah I and II and Al Nairyah I and II power projects in the kingdom with a total capacity of 7,200 MW. 

A key government entity, SPPC is responsible for preparing preliminary studies, tendering and awarding independent power projects, and purchasing electrical energy from independent power projects (IPPs) in the kingdom under the licence issued by the Saudi Electricity Regulatory Authority.

SPPC said these projects are part of the energy mix plan which is under the supervision of the Ministry of Energy to meet the future load demand of the electrical system, diversify energy production sources, and displace liquid fuels in order to achieve the optimal energy mix for electricity production in the kingdom by 2030, with renewable energy and gas each contributing 50 per cent. The energy mix plan also aims to localise gas turbine manufacturing and allow for the utilisation of carbon capture technologies to achieve the Saudi Vision 2030 goals.

Unveiling the winning bidders, SPCC said a consortium of Saudi Electricity Company (SEC), Acwa Power and Korea Electric Power Corporation (Kepco) has been awarded the contracts for the 1.8GW Rumah I and 1.8 GW Nairyah I power plants.

In this, SEC is a managing and technical member, while Acwa Power and Kepco are consortium members.

A consortium of Taqa, Japanese power generation company Jera and top Saudi contractor Al Bawani has secured the contracts for the 1.8GW Rumah II and 1.8GW Nairyah II power plants.

In this, Taqa is a managing and technical member, Jera a technical member, and Al Bawani a consortium member.

SPPC said it will now enter into a 25-year power purchase agreement with each project company, on a build, own, and operate (BOO) basis, with investments of around SR30 billion ($8 billion).

These projects will contain the latest Class H/J gas turbines of the highest efficiency in combined cycle operation and will enable the utilisation of carbon capture technologies.

Once completed, these projects will supply power to approximately three million residential units annually, it added.

Meanwhile, SEC, Acwa Power, and Kepco have announced the signing of a power purchase agreement with SPPC for the Rumah 1 and Nairyah 1. 

 These projects involve a combined investment of approximately SR15 billion. 

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