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Riyadh to award 7.2GW projects by September

5 February 2024

 

Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), is expected to award the contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants with a combined total capacity of 7.2GW by September this year.

The principal buyer also expects the projects to reach financial close by 31 December, according to industry sources.

Related read: Utility projects stage strong start to 2024

Each of the four independent power producer (IPP) projects will have a power generation capacity of 1,800MW.

The projects are:

  • Remah 1 
  • Remah 2
  • Al Nairiyah 1
  • Al Nairiyah 2

Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Al Nairiyah 1 and 2 will be in the Eastern Region.

SPPC issued the request for proposals to prequalified bidders on 31 January. It expects to receive proposals for the contracts by 30 June.

The companies that have been prequalified to bid for the contracts to develop the Remah and Nairiyah IPP projects are:

  • Abu Dhabi National Energy Company (Taqa) / Jera (Japan)
  • Ajlan Brothers (local) / China Power International Holding (China) 
  • China Gezhouba Overseas Investment Company (China)
  • Kahrabel / Engie (UAE/France)
  • EDF (France)
  • International Company for Water & Power Projects (Acwa Power, local)
  • General Electric Company (US)
  • Gulf Energy Development Public Company
  • Gulf Investment Corporation
  • Jomaih Energy & Water Company (AEW, local) )
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Mitsubishi Power
  • Nebras Power (Qatar)
  • Power & Water Utility Company for Jubail & Yanbu (Marafiq)
  • Samsung C&T Corporation (South Korea)
  • Saudi Electricity Company (local)
  • Siemens Energy (Germany)
  • Sojitz Corporation (Japan)  
  • Summit Global Power
  • The Kansai Electric Power Company (Japan) 

The four power generation facilities will be developed using a build, own and operate (BOO) model. 

SPPC indicated that the four power plants are envisaged to operate using natural gas combined-cycle technology with provision for carbon capture unit readiness.

US/India-based Synergy Consulting is the client’s financial adviser for the projects.

Plans for PP15 were first announced in 2015. Originally intended to be developed on a build, operate and transfer basis, the initial plan entailed three phases, each with a design capacity of 1,800MW. 

Awarded gas IPPs

SPPC awarded the contracts to develop four CCGT IPP projects in the kingdom last year.

A consortium comprising Saudi Electricity Company and Saudi utility developer 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. 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 engineering, procurement and construction contract for the two projects, while US-based GE will supply the CCGT for the power plants. 

A team comprising the local Al 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 will be developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.

MEED's October 2023 special report on Saudi Arabia includes: 

> COMMENT: Riyadh reshapes its global role
> POLITICS: Saudi Arabia looks both east and west
> SPORT: Saudi Arabia’s football vision goes global
> ECONOMY: Riyadh prioritises stability over headline growth
> BANKS: Saudi banks track more modest growth path
> UPSTREAM: Aramco focuses on upstream capacity building
> DOWNSTREAM: Saudi chemical and downstream projects in motion
> POWER: Riyadh rides power projects surge
> WATER: Saudi water projects momentum holds steady
> GIGAPROJECTS: Gigaproject activity enters full swing
> TRANSPORT: Infrastructure projects support Riyadh’s logistics ambitions
> JEDDAH TOWER: Jeddah developer restarts world’s tallest tower

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Jennifer Aguinaldo

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