ACWA Power has signed 25-year power purchase agreements (PPAs) with the state-owned Saudi Power Procurement Company (SPPC for two large-scale combined cycle gas turbine (CCGT) power plants in the Kingdom.

The PPAs for the two power plants - Taiba 1 and Qassim 1 - are valued at 14.6 billion Saudi riyals ($3.9 billion), the company said in a statement published on the Saudi stock exchange.

The work scope includes developing, financing, construction, ownership and operation of the two Independent Power Plant (IPP) projects with a production capacity of 1,800 megawatts (MW) each.

In October, SPPC, the principal buyer of electrical energy and capacity for power projects in the kingdom, awarded ACWA Power the contract to develop and operate the two IPP projects.

In December 2022, SPPC announced that it is re-tendering the 3.6 GW Taiba and the 3.6 GW Qassim IPPs into four smaller combined cycle power projects of 1.8 GW capacity, each with provision for CCS readiness in alignment with the Saudi Green Initiative and the kingdom’s Greenhouse Gases (GHGs) net-zero ambition by 2060.

(Reporting by D Madhura; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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