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 energy group 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 IPP’s projects in the kingdom under the license 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%. 

 

The energy mix plan also aims to localise gas turbine manufacturing and allow for the utilisation of carbon capture technologies readiness as part of the ministry’s endeavors 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 1.8GW Nairyah I power plants.

 

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

 

A consortium of Abu Dhabi National Energy Company (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.

 

According to SPCC, these projects come in alignment with the Saudi Green Initiative and its ambition to achieve greenhouse gases (GHGs) net-zero through the circular carbon economy approach by 2060 or earlier, depending on the availability of the necessary technologies.

 

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 SAR30 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 utilization of carbon capture technologies. 

 

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