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Saudi Arabia to announce Rumah and Nairiyah results imminently

4 November 2024

 

Principal buyer Saudi Power Procurement Company (SPPC) is expected to imminently announce the bid results for the contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants in Saudi Arabia with a total combined capacity of 7.2GW.

Two consortiums submitted bids for the contracts on 21 August, as MEED reported.

The four independent power producer (IPP) projects, each with a generation capacity of 1,800MW, are:

  • Rumah 1
  • Rumah 2
  • Al-Nairiyah 1
  • Al-Nairiyah 2

Rumah 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.

According to a source close to the projects, the teams that submitted bids to develop and operate these projects are:

  • Abu Dhabi National Energy Company (Taqa, UAE) / Jera (Japan) 
  • Acwa Power (local) / Korea Electric Power Corporation (Kepco, South Korea) / Saudi Electricity Company (SEC, local)

"There was an expectation that an announcement regarding the bid results was to be made on 31 October. Since that did not happen, the expectation is an announcement could be made before the end of this week," a source close to the project told MEED.

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

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

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. 

As MEED previously reported, SPPC has also started preparing for the next batch of gas-fired IPPs that it plans to tender.

The principal buyer is understood to have 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.

Awarded gas IPPs

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

A consortium comprising 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 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 engineering, procurement and construction 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 will be developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.

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Jennifer Aguinaldo

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