TAQA, JERA, and AlBawani to develop 3.6 GW power plants in Saudi Arabia
The consortium of Abu Dhabi National Energy Company (TAQA), JERA Co., Inc., and AlBawani Capital has signed two 25-year power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) to develop the 1.8 GW Rumah 2 Independent Power Project (IPP) and the 1.8 GW Al Nairyah 2 IPP.
These greenfield combined cycle gas turbine (CCGT) power plants will have a total capacity of 3.6 GW, using advanced high-efficiency gas turbines and supporting carbon capture technology.
The projects align with Saudi Vision 2030 and the Saudi Green Initiative (SGI), targeting a balanced energy mix of 50% renewable energy and 50% gas technology by 2030. The plants are expected to significantly contribute to the Kingdom’s energy diversification and decarbonization efforts.
The consortium will build, own, and operate the plants, with TAQA holding a 49% stake, JERA 31%, and AlBawani 20%. TAQA will serve as the lead developer, overseeing operations and maintenance. Construction and operation will create local job opportunities and advance energy expertise within the Kingdom.
Farid Al Awlaqi, TAQA: “These projects add 3.6 GW of low-carbon capacity to our portfolio, reinforcing TAQA’s role as a sustainable developer and champion of low-carbon power.”
Steven Winn, JERA: “This milestone highlights JERA’s commitment to decarbonizing thermal power generation while supporting Saudi Arabia’s strategic energy goals.”
Eng. Fakher AlShawaf, AlBawani: “This transformative project strengthens AlBawani’s contribution to Vision 2030 and showcases our dedication to sustainable and reliable power solutions.”
The partnership builds on prior collaboration between TAQA and JERA, including the recently closed industrial cogeneration plant in Jubail. The new power plants are expected to play a pivotal role in meeting Saudi Arabia’s growing energy demand and enhancing grid reliability while adhering to sustainability principles.