Saudi Arabia signs $9.3bn PPAs for 9.2GW power projects
The Saudi Power Procurement Company (SPPC) has signed power purchase agreements (PPAs) for five independent power producer (IPP) projects, totalling 9.2GW in capacity, as reported by Zawya.
The projects include thermal and solar photovoltaic (PV) power initiatives, with a combined investment of 35 billion Saudi riyals ($9.3 billion), supporting Saudi Vision 2030 goals for a balanced energy mix.
The thermal projects, Rumah 1 and 2 and Nairyah 1 and 2, will utilize combined cycle gas turbine technology with carbon capture readiness. The Sadawi solar PV project, part of the fifth phase of Saudi Arabia’s National Renewable Energy Programme, emphasizes the country’s renewable energy ambitions.
The agreements involve key consortiums:
Rumah-1: Acwa Power, Saudi Electricity Company (SEC), and Korea Electric Power Corporation (KEPCO) with an LCOE of 4.5859 cents/kWh.
Rumah-2: TAQA, JERA, and Al Bawani with an LCOE of 4.5613 cents/kWh.
Nairyah-1: Acwa Power, SEC, and KEPCO with an LCOE of 4.6114 cents/kWh.
Nairyah-2: TAQA, JERA, and Al Bawani with an LCOE of 4.4960 cents/kWh.
Sadawi solar PV: Masdar, KEPCO, and GD Power Development with an LCOE of 1.2926 cents/kWh.
The thermal projects are expected to begin operations in Q2 2028, while the Sadawi solar PV project is set to commence in Q2 2027.
These projects aim to phase out liquid fuels, achieve a 50% renewable and 50% natural gas energy mix, and boost Saudi Arabia’s transition to sustainable energy.