Saudi Power Procurement Company (SPPC) announced winning bids for two major power projects in Saudi Arabia. The contracts were awarded to consortiums led by International Company for Water and Power Projects (Acwa Power) and Abu Dhabi-based energy group Taqa. Together, these projects, known as Rumah I and II and Al Nairyah I and II, will add a total power capacity of 7,200 megawatts (MW) to the kingdom’s energy grid.
SPPC, a government entity, oversees the planning, tendering, and purchasing of power from independent projects. It operates under a license from the Saudi Electricity Regulatory Authority. These new power projects are part of Saudi Arabia’s plan to diversify energy sources, reduce dependency on liquid fuels, and prepare for future electricity demands. The energy mix targets, set by the Ministry of Energy, aim to reach 50% renewable energy and 50% gas for electricity production by 2030.
The winning bidders for the 1.8 GW Rumah I and 1.8 GW Nairyah I plants include a consortium with Saudi Electricity Company (SEC), Acwa Power, and Korea Electric Power Corporation (Kepco). SEC will serve as the managing and technical member, with Acwa Power and Kepco as consortium members. The second contract, covering the 1.8 GW Rumah II and 1.8 GW Nairyah II plants, was awarded to a consortium with Abu Dhabi National Energy Company (Taqa), Japanese power company Jera, and Saudi contractor Al Bawani. Taqa will take the role of managing and technical member, while Jera and Al Bawani will be supporting consortium members.
Each project company will sign a 25-year power purchase agreement with SPPC. The projects, based on a build, own, and operate (BOO) model, represent an investment of around SAR30 billion ($8 billion). They will use high-efficiency Class H/J gas turbines and have the potential for carbon capture technology. Once operational, these plants are expected to supply power to approximately three million residential units each year.
