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Saudi Arabia plans two new gas-fired power plants

12 June 2024

 

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Saudi Power Procurement Company (SPPC) has invited companies to bid for the transaction advisory contracts for its next gas-fired independent power projects (IPPs).

According to an industry source, the Saudi principal buyer has received bids for the financial, legal and technical consultancy roles for the Al-Rais and Riyadh 16 IPPs.

The Al-Rais IPP will have a capacity of 2,400MW while the Riyadh 16 IPP has a planned capacity of 3,600MW.

Since 2022, SPPC has procured two batches of combined-cycle gas turbine (CCGT) schemes.

Qassim and Taiba IPPs

SPPC awarded contracts to develop the Qassim 1 and Taiba 1 and the Qassim 2 and Taiba 2 IPPs last year.

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

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

Each project will be developed on a build-own-operate basis by the winning consortiums, which will be 100% owned by the successful bidders.

Remah and Nairiyah IPPs

Meanwhile, the final consortiums of bidders are being formed for the contracts to develop and operate the Remah 1 and 2 and Nairiyah 1 and 2 IPPs, as MEED previously reported.

Bids for the contracts are due on 30 June, although SPPC is understood to be reviewing whether an extension is necessary.

Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Nairiyah 1 and 2 will be in the Eastern Region. Each IPP will have a capacity of 1,800MW.

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Jennifer Aguinaldo

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