Siemens Energy has signed a $1.6 billion deal to provide technology for two new power plants in Saudi Arabia. The Rumah 2 and Nairyah 2 facilities will be located in different parts of the country, adding 3.6 gigawatts (GW) of electricity to the national grid. These plants will replace older oil-based power stations, reducing emissions and supporting future carbon capture technologies. Once fully operational, they will supply energy to around 1.5 million homes.
The project is being built by Harbin Electric International. Siemens Energy will manufacture core components at its facility in Dammam, which is being expanded to support local production. The plants will start running in simple cycle mode in 2027 before transitioning to combined-cycle operation in 2028.
Saudi Arabia is also developing renewable energy projects alongside conventional power generation. The Sakaka Solar Power Plant, with a 300-megawatt (MW) capacity, is supplying power to the grid. A 100 MW wind farm in Al Jouf is in operation. In Jeddah, a 400 MW solar photovoltaic (PV) project is generating electricity for urban and industrial use.
New renewable energy projects are being introduced in different regions. A 50 MW floating solar system is being tested in the Eastern Province. A 30 MW rooftop solar project is being installed at industrial facilities in Riyadh. A 10 MW hybrid solar-diesel system is providing electricity to remote communities. A 5 MW waste-to-energy facility in Mecca is converting organic waste into power.
Hydrogen energy is also being explored. A 3 MW green hydrogen pilot project in Yanbu is testing the use of renewable energy for hydrogen production. A 2 MW solar-powered desalination plant in Tabuk is generating electricity while producing clean water. These projects are part of Saudi Arabia’s renewable energy expansion.
