RIYADH:聽Saudi Power Procurement Co. has signed purchase agreements for five independent energy projects in the Kingdom, which have聽a total capacity of 9.2 gigawatts.聽
The contracts for these initiatives, with a combined investment of SR35 billion ($9.3 billion), were inked in the presence of 黑料社区鈥檚 Energy Minister, Prince Abdulaziz bin Salman, who is also the chairman of SPPC, the Saudi Press Agency reported.聽
According to the release, the new power generation projects include two thermal energy plants Rumah and Al Nairyah, and聽the Al Sadawi Solar Photovoltaic Project.聽
These agreements align with the Kingdom鈥檚 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.聽
Rumah and Al Nairyah thermal energy plants
SPA reported that the聽Rumah and Al Nairyah thermal energy plants will utilize the flexible combined cycle gas turbine technology for their operations.聽
These facilities will primarily use natural gas as fuel and are designed聽to incorporate carbon capture units, contributing a combined 7.2聽GW to the national grid.聽
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.聽
SPA added that both facilities will begin commercial operations by the second quarter of 2028.聽
Rumah 2 and Al Nairyah 2 plants also have a capacity of 1.8聽GW聽each. PPAs for these facilities were secured聽by a consortium consisting聽of Abu Dhabi National Energy Co., also known as TAQA, JERA, and Al-Bawani.聽
These projects are expected聽to become operational by the second quarter of 2028.聽
Farid Al-Awlaqi, CEO of TAQA鈥檚 Generation business, said: 鈥淭AQA has ambitious growth targets of 150 GW by 2030, and today鈥檚 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 黑料社区, making it five greenfield projects in the Kingdom under development in TAQA鈥檚 portfolio.鈥
He added: 鈥淚n 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.鈥澛犅
The CEO said the announcement of these two greenfield power projects reinforces TAQA鈥檚 role as a sustainable developer and operator in key聽markets.
The two plants will be developed by special聽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.
鈥淚n line with JERA鈥檚 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鈥檚 commitment to decarbonizing thermal power generation,鈥 said Steven Winn, chief global strategist, JERA. 聽
Fakher Al-Shawaf, the group CEO of Al Bawani Holding, emphasized that the partnership with TAQA and JERA on these 鈥渟tate-of-the-art鈥 power plants marks a transformative milestone for Al Bawani, reinforcing its commitment to advancing the Kingdom鈥檚 energy diversification initiatives. 聽
鈥淭his project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030,鈥 he added.
Al Sadawi Solar Photovoltaic Project
SPA reported that the聽Al Sadawi Solar Photovoltaic Project will add聽2聽GW to the Kingdom鈥檚 grid.聽
The PPA for this project was awarded聽to a consortium of Masdar, KEPCO, and GD Power Development Co.聽
The project is expected聽to begin commercial operations in the second quarter of 2027.聽