Saudi Arabia’s ACWA Power, state-run Saudi Electricity Company (SEC), and Korea Electric Power Corporation (KEPCO) said they had achieved financial close on two major gas-fired power projects worth about 15 billion riyals ($4 billion), in a move to boost capacity and support the kingdom’s energy transition.
The Rumah 1 and Nairyah 1 independent power producer (IPP) projects, each with a capacity of 1,800 megawatts, will be developed in Riyadh Province and the Eastern Province respectively. Together, they will add 3,600 MW to Saudi Arabia’s grid and are designed for future carbon capture integration, the partners said.
Ownership of the project companies – Remal Energy and Naseem Energy – will be split between ACWA Power (35%), SEC (35%) and KEPCO (30%). The Saudi Power Procurement Company will act as the principal buyer under long-term agreements.
Financing was secured from a syndicate of local, regional and international lenders, including Export-Import Bank of Korea, Saudi National Bank, Banque Saudi Fransi, Standard Chartered, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and Arab Petroleum Investments Corporation.
“The successful financial close underscores investor confidence in ACWA Power’s strategy and the international significance of these projects,” said Thomas Brostrom, ACWA Power’s chief investment officer.
Abdulrahim Alharbi, acting CEO of SEC subsidiary Energy Infrastructure Consortium Company, said the projects reflect “the Kingdom’s credibility in attracting strategic investment” and support Vision 2030 targets for reliable and sustainable energy.
Both plants will use combined-cycle gas turbine technology and are expected to strengthen Saudi Arabia’s power system while supporting its net-zero 2060 goal.
