Three separate deals entail thermal power and solar PV plants
Principal buyer Saudi Power Procurement Company (SPPC) has signed the power-purchase agreements for four thermal power plants and one solar photovoltaic (PV) farm in Saudi Arabia.
The four combined-cycle gas turbine (CCGT) plants and one solar PV project have a total combined capacity of 9.2GW and will require a combined investment of about SR35bn ($9.3bn).
A team comprising Saudi Electricity Company (SEC), Riyadh-based utility developer Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contracts to develop and operate the Rumah 1 and Nairiyah 1 independent power projects (IPPs), which each have a capacity of 1,800MW.
Rumah 1 is located in the Central Region in Riyadh and is part of the previously planned Riyadh Power Plant 15 (PP15). Nairiyah 1 is located in the Eastern Region.
The team offered a levelised electricity cost of $cents 4.5859 a kilowatt-hour (kWh) for Rumah 1, and $cents 4.6114/kWh for Nairiyah 1.
A developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company won the contracts to develop and operate the Rumah 2 and Nairiyah 2 IPPs, which each have a capacity of 1,800MW.
The developer consortium offered an LCOE of $cents 4.5613/kWh for Rumah 2, and $cents 4.4960/kWh for Nairiyah2.
The power generation plants will be developed using a build, own and operate (BOO) model over 25 years, with SPPC as the sole offtaker of electricity.
Each plant is estimated to require an investment of roughly $2bn. The plants are expected to reach commercial operation by the second quarter of 2028.
Solar PV contract
A fifth PPA was signed for the Al-Sadawi solar PV IPP, which has a capacity of 2,000MW. A consortium of Abu Dhabi Future Energy Company (Masdar), Kepco and China’s GD Power Development Company offered an LCOE of hals 4.847 ($c1.29)/kWh for the contract to develop the scheme, which is located in the Eastern Province.
The Al-Sadawi solar IPP project is scheduled to achieve commercial operation in Q2 2027.
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