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The Saudi Power Procurement Company (SPPC) awarded four contracts for independent power projects (IPPs) to two consortiums of local, regional and international contractors, on a build, own and operate basis (BOO), state news agency SPA reports. The 25-year power purchase agreements represent a combined investment of SAR 30 bn and a total capacity of 7.2 GW at 1.8 GW each.
One consortium, two projects: Saudi Electricity Company (SEC), Acwa Power, and Korea Electric Power Corporation (KEPCO), secured contracts for the Rumah-1 plant located in the Central Province and the Nairyah-1 plant in the Eastern Province. SEC will serve as the managing and technical lead, while Acwa Power and KEPCO contribute additional expertise.
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Consortium #2: Abu Dhabi’s National Energy Company (Taqa), Japan’s Jera, and Saudi’s Al Bawan, will oversee the Rumah-2 and Nairyah-2 plants also at 1.8 GW each. Taqa will act as the managing and technical lead, while Jera serves as technical member.
SOUND SMART- All four projects will incorporate high-efficiency gas turbines in combined-cycle mode, which allow for the use of carbon capture technologies. They are expected to power some 3 mn households annually, as part of the government’s energy mix strategy engineered to meet growing demand and diversify energy sources. Saudi aims to generate 50% of its electricity needs from natural gas by 2030, with the other half coming from renewables.
MEANWHILE- Meed reports that new power generation plants in Shuqaiq and Shoaiba will replace the 2.4 GW Al Rais plant and the 3.6 GW Riyadh project. The news outlet reported back in June that the state-owned energy procurement company has already received bids for the financial, legal, and technical consultancy roles for the projects.
