Riyadh to start prequalifying for four IPP projects
3 January 2024
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Saudi Arabia’s power offtaker is expected to start the prequalification process for four gas-fired independent power producer (IPP) projects shortly.
According to industry sources, each of the four IPPs 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 located in the Eastern Region.
“The request for qualifications for the four projects is expected to be issued within this month,” one of the sources said.
MEED previously reported that the proposed PP15 power plant in Riyadh and another power plant in Al-Khafji would each have a design capacity of 3,600MW.
Saudi Power Procurement Company (SPPC) received three bids for the transaction advisory package for the planned independent power projects last year.
Related read: Mena power rides high into 2024
US/India-based Synergy Consulting is the client’s financial adviser for the projects.
The four power generation facilities will be developed using a build-own-operate (BOO) model.
Plans for PP15 were first announced in 2015. Originally intended to be developed on a build-operate-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 combined-cycle gas turbine (CCGT) IPP projects in the kingdom last year.
A consortium comprising Saudi Electricity Company (SEC) 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 per cent owned by the successful bidders.
MEED understands the Al-Jomaih-led consortium has partnered with Germany’s Siemens Energy for the supply of CCGT.
According to SPPC, the project will use the latest turbines, allowing the Saudi utility company to utilise carbon-capture technologies.
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Kuwait tenders main Saad Al-Abdullah substation contract
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The pilot project's electrolyser capacity and equipment supplier have not yet been disclosed.
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