Saudi Power Procurement Company (SPPC) has signed Power Purchase Agreements (PPAs) for five Independent Power Producer (IPP) projects, totaling 9,200 MW in capacity. The move underlines Saudi Arabia’s commitment to diversifying its energy mix and advancing its Vision 2030 goals.
The new projects include the Rumah and Nairyah Thermal Energy plants, which will employ flexible Combined Cycle Gas Turbine (CCGT) technology powered by natural gas. These plants, with a combined capacity of 7,200 MW, are designed to accommodate future carbon capture capabilities.
PPAs for the Rumah 1 and Nairyah 1 IPPs, each with a capacity of 1,800 MW, were secured by a consortium led by ACWA Power, Saudi Electricity Company (SEC), and Korea Electric Power Corporation (KEPCO). The projects boast Levelized Costs of Electricity (LCOEs) of 4.5859 and 4.6114 cents/kWh, respectively.
The Rumah 2 and Nairyah 2 IPPs, also with 1,800 MW capacities each, were awarded to a consortium comprising Abu Dhabi National Energy Company (TAQA), JERA, and local firm Al-Bawani. The projects achieved even lower LCOEs of 4.5613 and 4.4960 cents/kWh, reflecting competitive pricing in the sector.
Both the Rumah and Nairyah projects are set to commence commercial operations by the second quarter of 2028.
The Al Sadawi Solar PV Project, part of the fifth round of the National Renewable Energy Program (NREP), will add 2,000 MW of clean energy capacity. The project was awarded to a consortium led by Masdar, KEPCO, and GD Power Development Co. It is expected to deliver electricity at an ultra-competitive LCOE of 1.2926 cents/kWh and begin operations in the second quarter of 2027.
A vision for renewable energy
The projects represent a combined investment of 35 billion Saudi Riyals ($9.3 billion). By displacing liquid fuels and optimising the energy mix, they aim to meet Saudi Arabia’s goal of sourcing 50% of electricity from gas and renewables by 2030.
With agreements for 25 renewable projects signed by the end of 2024, totaling 23 GW in capacity, Saudi Arabia is positioning itself as a regional leader in the renewable energy sector.
