Saudi Arabia drops Shuqaiq power plan

23 February 2011

Saudi Electricity Company to push ahead with Qurrayah and Dhebba schemes

Saudi Electricity Company (SEC) has revised its independent power project (IPP) programme and decided to shelve plans to develop a project at Shuqaiq in the south west of the country.

The project, which was originally to have a capacity of 800MW, was set to be brought online by 2021.

According to a source at SEC, the IPP plan was adjusted following the latest analysis of the demand and load factors.

SEC is forging ahead with plans to develop an IPP at Qurrayah. Seven bidders remain in the tender and bids are due by 19 March.

The project was originally launched as an oil-fired facility when developers were first approached in May 2010. By August, SEC had taken the decision to change the fuel for the project to natural gas.

SEC plans to offer the second phase of the Qurrayah IPP – to have a capacity of 1,800-2,000MW – to the market in 2011. While the second phase is likely to be gas-fired, it has not yet been confirmed.

SEC also intends to tender another IPP at Dhebba in the north west of the country in 2012. It will have a capacity of 1,600-1,800MW and first power is scheduled to come online by 2016.

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