Saudi Power Procurement Company (SPPC), in the presence of Energy Minister Abdulaziz bin Salman bin Abdulaziz, has signed Power Purchase Agreements (PPAs) for five Independent Power Producer (IPP) projects totaling 9,200 megawatts (MW), encompassing thermal and solar photovoltaic power.

The agreements include the Rumah 1 & 2 and Nairyah 1 & 2 IPP projects, utilising combined cycle gas turbine technology with carbon capture readiness, and the Sadawi solar photovoltaic (PV) IPP project, part of the fifth phase of the National Renewable Energy Programme, according to an Arabic language press statement from the Ministry of Energy.

The details about the gas-fuelled combined cycle power projects are as follows:
Rumaih-1 and Nairyah-1 (1,800 MW each):
PPAs were signed with a consortium of ACWA Power, Saudi Electricity Company (SEC), and Korea Electric Power Corporation (KEPCO).

Rumaih-1 levelised cost of electricity (LCOE): 4.5859 cents/kWh
Nairyah -1 LCOE: 4.6114 cents/kWh

Rumaih-2 and Nairyah-2 (1,800 MW each):
PPAs signed with a consortium of Abu Dhabi National Energy Company (TAQA), JERA, and Al Bawani.

Rumaih-2 LCOE: 4.5613 cents/kWh
Nairyah -2 LCOE: 4.4960 cents/kWh

The four projects are slated for commercial operation in the second quarter of 2028.

Details about the solar power project are as under:
Sadawi solar PV IPP (2,000 MW):
PPAs were signed with a consortium comprising Masdar, KEPCO, and GD Power Development.
LCOE: 1.2926 cents/kWh
The Sadawi project is scheduled for commercial operation in the second quarter of 2027.

The five projects represent a total investment of 35 billion Saudi riyals ($9.3 billion) and align with Saudi Vision 2030 goals to achieve a balanced energy mix with 50 percent renewable energy and 50 percent natural gas, phasing out liquid fuels in electricity production, the Ministry's statement noted.

(Reporting by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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