SEC, Al Jomaih consortiums win $7.8bn Saudi power projects
RIYADH, October 25, 2023
Saudi Power Procurement Company (SPPC) has announced the winning bidders for four of its key conventional independent power plant (IPP) projects - Taiba-1, Taiba-2, Qassim-1, and Qassim-2 - being set up in the kingdom at an investment of nearly SR29 billion ($7.8 billion).
These projects, which boast a total of 7.2GW capacity, are being implemented as part of the KSA's energy mix plan under the supervision of the Ministry of Energy, said SPPC, a limited liability company owned by the government, which is the off-taker for both projects.
Mainly aimed at meeting the future load demand of the electrical system, the energy mix plan will also ensure the reliability and of energy supply, localisation of the gas turbines industry as well as permit the utilisation of carbon capture technologies, it stated.
According to SPCC, a consortium of Saudi Electricity Company (SEC) and Acwa Power, a leading regional developer of power and desalination projects, clinched the winning bid for Taiba-1 and Qassim-1 combined-cycle gas turbine (CCGT) projects, which will be developed at total investment of SAR14.6 billion ($3.9 billion), while a consortium of Saudi-based Al Jomaih Energy and Water along with French utility major EDF and Buhur for Investment has won the Taiba-2 and Qassim-2 projects.
Early this year in January, SPPC had launched the request for proposals (RFP) for these projects, and by July-end, it had received five bids for each of Taiba-2 and Qassim-2 projects. The following month, five bids were received for each of Taiba-1 and Qassim-1 projects.
All bids were evaluated to ensure compliance with the RFP's technical and commercial requirements before the announcement of the winning bidders, said SPCC in a statement.
Each project will be developed on a build, own, and operate (BOO) basis by the wining consortiums, which will be 100% owned by the successful bidder.
The winning consortiums will now work with SPPC, its partners and relevant stakeholders to steer the project towards the signing of 25-year power purchase agreements (PPAs) next month.
According to SPPC, the projects will contain the latest Class H/J Gas Turbines of the highest efficiency in Combined Cycle operation, for the first time in the Kingdom of Saudi Arabia and will allow for the utilization of carbon capture technologies.
These projects will supply power to approximately 3 million residential units annually, it added.-TradeArabia News Service
