Saudi developer of water and power projects ACWA Power has signed 25-year power purchase agreements (PPA) with state-backed Saudi Power Procurement Company (SPPC) for two combined-cycle gas power plant projects valued at 15 billion Saudi riyals ($4 billion). 

The Al-Rumaih-1 and Al-Nairyah-1 Independent Power Producer (IPP) projects, each with a production capacity of 1,800 megawatts (MW), are located in Riyadh and the Eastern Province, respectively, ACWA Power said in a statement to the Saudi stock exchange on Monday.

Earlier in November, SPPC had announced the winning bidders for the Rumaih -1, Rumaih -2, Al-Nairyah -1, and Al-Nairyah -2 IPP projects representing a combined generation capacity of 7,200 MW. The SPPC statement said these projects will contain the latest Class H/J gas turbines and allow for the utilisation of carbon capture technologies.

ACWA Power holds a 35 percent ownership stake in each IPP, along with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO) as partners. 

SPPC had awarded the Rumaih 2 and Nairyah 2 power plants, each with a capacity of 1,800 MW, to a consortium of UAE's Abu Dhabi National Energy Company (TAQA), Japan's JERA, and Saudi's Al-Bawani.

Last month, Zawya Projects had reported that four CCGT IPP projects are in the final stage of award with a total capacity of 7.2 gigawatts (GW). The report said the Kingdom is planning to tender 6 GW of gas-fired combined cycle power projects with carbon capture and storage (CCS) readiness in 2025. 

SPPC is responsible for preparing preliminary studies, tendering and awarding independent power projects, and purchasing electrical energy from IPP’s projects in the Kingdom under the license issued by the Saudi Electricity Regulatory Authority.

(Reporting by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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