The Saudi Power Procurement Company (SPPC) has signed Power Purchase Agreements (PPAs) for five Independent Power Producer (IPP) projects with a total capacity of 9,200 megawatts (MW). The projects, which include thermal and solar photovoltaic (PV) energy, are part of Saudi Arabia’s efforts to diversify its energy mix. The signing took place in the presence of Energy Minister Abdulaziz bin Salman, according to a statement from the Ministry of Energy.
The agreements cover four gas-fueled combined cycle power projects and one solar PV project. The gas projects, Rumah 1 & 2 and Nairyah 1 & 2, will use combined cycle gas turbine technology equipped for carbon capture readiness. Rumah 1 and Nairyah 1, with a capacity of 1,800 MW each, will be developed by a consortium comprising ACWA Power, Saudi Electricity Company, and Korea Electric Power Corporation.
The Levelised Cost of Electricity (LCOE) for these projects is 4.5859 cents per kilowatt-hour (kWh) and 4.6114 cents per kWh, respectively. Rumah 2 and Nairyah 2, also with a capacity of 1,800 MW each, will be developed by a consortium that includes Abu Dhabi National Energy Company, JERA, and Al Bawani. The LCOE for Rumah 2 is 4.5613 cents per kWh, while Nairyah 2 has an LCOE of 4.4960 cents per kWh. These projects are expected to begin commercial operations in the second quarter of 2028.
The solar project, Sadawi Solar PV, will have a capacity of 2,000 MW. It will be developed by a consortium consisting of Masdar, Korea Electric Power Corporation, and GD Power Development. The LCOE for the project is 1.2926 cents per kWh, making it one of the lowest-cost renewable energy projects in the country. The Sadawi project is scheduled to commence commercial operations in the second quarter of 2027. The total investment for these projects is estimated at 35 billion Saudi riyals, equivalent to $9.3 billion.
