RIYADH: Saudi Power Procurement Co. has signed purchase agreements for five independent energy projects in the Kingdom, which have a total capacity of 9.2 gigawatts.
The contracts for these initiatives, with a combined investment of SR35 billion ($9.3 billion), were inked in the presence of Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, who is also the chairman of SPPC, the Saudi Press Agency reported.
According to the release, the new power generation projects include two thermal energy plants Rumah and Al Nairyah, and the Al Sadawi Solar Photovoltaic Project.
These agreements align with the Kingdom’s plan to produce 50 percent of its power needs from clean energy sources by the end of this decade and achieve net zero emissions by 2060.
Rumah and Al Nairyah thermal energy plants
SPA reported that the Rumah and Al Nairyah thermal energy plants will utilize the flexible combined cycle gas turbine technology for their operations.
These facilities will primarily use natural gas as fuel and are designed to incorporate carbon capture units, contributing a combined 7.2 GW to the national grid.
The report added that the PPAs for the Rumah 1 and Al Nairyah 1 plants, each with a capacity of 1.8 GW, were signed with a consortium involving Saudi utility giant ACWA Power, Saudi Electricity Co., and Korea Electric Power Corp.
SPA added that both facilities will begin commercial operations by the second quarter of 2028.
Rumah 2 and Al Nairyah 2 plants also have a capacity of 1.8 GW each. PPAs for these facilities were secured by a consortium consisting of Abu Dhabi National Energy Co., also known as TAQA, JERA, and Al-Bawani.
These projects are expected to become operational by the second quarter of 2028.
Farid Al-Awlaqi, CEO of TAQA’s Generation business, said: “TAQA has ambitious growth targets of 150 GW by 2030, and today’s announcement marks a major milestone for 2024 with the addition of a further 3.6 GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia, making it five greenfield projects in the Kingdom under development in TAQA’s portfolio.”
He added: “In addition to signing the PPAs, we are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities.”
The CEO said the announcement of these two greenfield power projects reinforces TAQA’s role as a sustainable developer and operator in key markets.
The two plants will be developed by special purpose entities jointly owned by TAQA with 49 percent, JERA with 31 percent, and Al Bawani with 20 percent.
These entities will also manage the operation and maintenance of the facilities.
“In line with JERA’s goal to achieve net zero by 2050, the award of these two high-efficiency independent power projects, featuring state-of-the-art HL class gas turbines, reinforces JERA’s commitment to decarbonizing thermal power generation,” said Steven Winn, chief global strategist, JERA.
Fakher Al-Shawaf, the group CEO of Al Bawani Holding, emphasized that the partnership with TAQA and JERA on these “state-of-the-art” power plants marks a transformative milestone for Al Bawani, reinforcing its commitment to advancing the Kingdom’s energy diversification initiatives.
“This project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030,” he added.
Al Sadawi Solar Photovoltaic Project
SPA reported that the Al Sadawi Solar Photovoltaic Project will add 2 GW to the Kingdom’s grid.
The PPA for this project was awarded to a consortium of Masdar, KEPCO, and GD Power Development Co.
The project is expected to begin commercial operations in the second quarter of 2027.
