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Harbin to build Remah 2 and Nairiyah 2 power plants

19 November 2024

 

China’s Harbin Electric will undertake the engineering, procurement and construction (EPC) contract for the project to develop two combined-cycle gas turbine (CCGT) plants in Riyadh and Saudi Arabia’s Eastern Region.

According to an industry source, the Chinese firm will implement the EPC work for the Remah 2 and Nairiyah 2 independent power projects (IPPs), which each have a capacity of 1,800MW.  

A developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company signed the power-purchase agreements with the principal buyer, Saudi Power Procurement Company (SPPC), for the two schemes on 18 November.

According to a local media report, the developer consortium offered a levelised cost of electricity (LCOE) of $cents 4.5613/kWh for Remah 2, and $cents 4.4960/kWh for Nairiyah 2.

Each plant will require an investment of roughly $2bn.

MEED previously reported that the developer consortium has tapped Germany’s Siemens Energy to supply the gas turbines to power the Remah 2 and Nairiyah 2 IPPs.

The power generation plants will be developed using a build, own and operate (BOO) model over 25 years, with SPPC as the sole offtaker of electricity.

SPPC also named a consortium comprising Saudi Electricity Company (SEC), Riyadh-based utility developer Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) as the winning bidder for the contracts to develop and operate the similarly configured Remah 1 and Nairiyah 1 IPPs.

SPPC previously indicated that the four power plants would operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.

SPPC’s transaction advisory team for the Remah 1 and 2 and Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

Awarded gas-fired IPPs

SPPC awarded contracts to develop four gas-fired power generation IPP projects last year.

A consortium comprising SEC and Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPP projects on 13 November 2023. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

China’s Sepco 3 will undertake the EPC contract for the two projects, while US-based GE will supply the CCGT for the power plants. 

A team comprising Jomaih Energy & Water, France’s EDF and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 IPP and 1,800MW Qassim 2 IPP schemes.

Each project is being developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12940680/main.gif
Jennifer Aguinaldo

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