Samsung, Siemens and GE among global project developers in race for Saudi power plants

Siemens is one the firms bidding for the four power plants in Saudi Arabia. Shutterstock
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RIYADH: Siemens, Samsung and ACWA Power are among 21 global utility project firms to prequalify for the development of four power plants across Saudi Arabia.   

In a statement, Saudi Power Procurement Co. also revealed French-owned EDF, Kepco from Korea, and Japan’s Marubeni were in contention for the contracts, as well as TAQA from the UAE and US-based GE. 

These projects are Rumah-1 and Rumah-2 in the Central region and Nairyah-1 and Nairyah-2 in the Eastern region, with a capacity of 1,800 megawatts per plant. 

According to SPPC, the plants will operate using natural gas combined cycle technology, incorporating provisions for carbon capture unit readiness. Additionally, these projects align with the Saudi Green Initiative, aiming to attain net-zero greenhouse gases through a circular carbon economy approach by 2060.

Prequalified bidders for the project comprise global utility project developers and developer consortiums. Notable participants include Engie, Mitsubishi, Sojitz Corp. 

In addition, Summit Global Power, and Kansai Electric Power, along with China Gezhouba Oversea Investment Co. and Thai group Gulf Energy Development Public Co. are also participating, according to senior SPPC officials. 

Furthermore, regional contenders include Kuwait’s Gulf Investment Corp. and Qatar-based Nebras Power. 

To support local industries, key national players are actively participating in the competition, led by premier Saudi utility project developer ACWA Power.  

Others include Ajlan and Bros for Trading Co. in consortium with China Power International Holding, Al-Jomaih Energy and Water Co., Power and Water Utility Co. for Jubail and Yanbu, and Saudi Electricity Co. 

The 7,200-MW plants, according to SPPC, aim to diversify the Kingdom’s energy mix for electricity production, reducing reliance on liquid fuel. The objective is to achieve a balanced energy mix, with 50 percent from renewable sources and 50 percent from gas. 

In November 2023, the company signed power purchase agreements with Al-Jomaih Energy and Water and Saudi Electricity Co. for four independent power plant projects with a total capacity of 7.2 gigawatts. 

These plants, namely Taiba-1, Taiba-2, Qassim-1, and Qassim-2, are under construction in the Kingdom, with a total investment of SR29 billion ($7.8 billion).