In the presence of Minister of Energy and Chairman of the Board of Directors of Saudi Power Procurement Company Prince Abdulaziz bin Salman bin Abdulaziz, the Saudi Power Procurement Company (“Principal Buyer”) has signed Power Purchase Agreements (PPAs) for five (5) IPP Power Generation projects, totaling 9200 MW.
According to a press release from the Energy Ministry, the new projects include Rumah and Nairyah Thermal Energy utilizing flexible Combined Cycle Gas Turbine technology, using the natural gas as main fuel, with the capacity to install carbon capture units, totaling 7,200 MW.
PPAs for Rumah 1 & Nairyah 1 IPPs, with a capacity of 1,800 MW each, were signed with a consortium of ACWA Power,Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO). The projects LCOEs are 4.5859 Cents/kWh for Rumah 1, and 4.6114 Cents/kWh for Nairyah 1.
PPAs for Rumah 2 & Nairyah 2 IPPs, with a capacity of 1,800 MW each, were signed with a consortium of Abu Dhabi National Energy Company PJSC (TAQA), JERA and Al-Bawani local company. The project LCOEs are 4.5613 Cents/kWh for Rumah 2 and 4.4960 Cents/kWh for Nairyah2.
Both the Rumah and Nairyah Thermal Energy Projects are scheduled to achieve commercial operation in Q2 2028.
Al Sadawi Solar Photovoltaic Project, which is part of Round 5 of the National Renewable Energy Program (NREP), will deliver a total capacity of 2,000 MW.
PPA for Al Sadawi Solar PV Project, with a capacity of 2,000 MW, were signed with a consortium of Abu Dhabi Future Energy Company PJSC (Masdar), KEPCO and GD Power Development Co. The project is scheduled to achieve commercial operation in Q2 2027.
This project will provide clean power at a highly competitive Levelized Costs of Electricity (LCOE) of 1.2926 Cents/kWh for Al Sadawi.
The combined projects will attract total investments of approximately 35 billion Saudi Riyals (9.3 billion USD). The projects highlight the determination of the energy sector in Saudi Arabia to achieve the goals of Saudi Vision 2030. The National Renewable Energy Program (NREP) projects aim to achieve an optimal energy mix for electricity production, targeting approximately 50% each from gas and renewable energy by 2030, while also displacing liquid fuels currently utilized in the electricity production sector and other sectors within the Kingdom.
By the end of 2024, the Kingdom has signed agreements for 25 renewable energy projects, distributed across various regions and collectively generating approximately 23 gigawatts of electricity.
