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Mitsubishi Power confirms Rumah 1 and Nairiyah 1 deal

2 April 2025

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Mitsubishi Power, part of Japan’s Mitsubishi Heavy Industries, has confirmed it has received two orders to supply six M501JAC gas turbines for the Rumah 1 and Al-Nairiyah 1 power generation projects in Saudi Arabia.

Rumah 1 is located in the Central Region in Riyadh and is part of the previously planned Riyadh Power Plant 15. Nairiyah 1 is located in the Eastern Region.

The scope includes the supply of generators and auxiliary equipment, Mitsubishi Power said in a statement.

MEED exclusively reported that the Japanese original equipment manufacturer had been selected to supply its gas turbines for the independent power project (IPP) in November last year.

A consortium comprising the local Saudi Electricity Company (SEC) and Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contract to develop the Rumah 1 and Al-Nairiyah 1 IPP the same month.

The power plants will deliver a combined 3.6GW, accounting for nearly 2.5% of the national grid’s capacity.

The M501JAC turbines will be assembled at Mitsubishi Power Saudi Arabia’s Dammam factory.

The 17,730 square-metre facility also provides services for gas turbine components.

According to Mitsubishi Power, the plant features "a majority of Saudi employees, in line with the firm’s Saudi National programme".

China’s Sepco 3 and South Korea's Doosan Enerbility will undertake the engineering, procurement and construction (EPC) contract for the projects, as MEED reported.

The SEC, Acwa Power and Kepco team offered a levelised electricity cost (LCOE) of $cents 4.5859 a kilowatt-hour ($c/kWh) for Rumah 1 and 4.6114 $c/kWh for Al-Nairiyah 1.

Acwa Power said that the two IPPs will require a combined investment of approximately SR15bn ($4bn). The IPPs are expected to reach commercial operations in Q2 2028. 

Saudi Power Procurement Company (SPPC) received bids for the contracts for four thermal IPPs – the other two being the similarly configured Rumah 2 and Al-Nairiyah 2 – in August last year.

The four power generation facilities will be developed using a build, own and operate model over 25 years. 

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

Photo credit: Mitsubishi Power (for illustrative purposes only)

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Jennifer Aguinaldo

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