meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi Electricity Company plans to add 30GW of capacity

13 June 2024

Riyadh-headquartered utility Saudi Electricity Company (SEC) is understood to be looking at developing approximately 30,000MW of gas-fired capacity within and outside Saudi Arabia. 

SEC in 2022 completed divesting its full interest in the principal buyer, Saudi Power Procurement Company (SPPC), which has enabled it to bid for contracts to develop and operate power generation plants, in addition to operating the kingdom's power transmission and distribution network.

Related read: Saudi energy restructuring gains momentum 

According to industry sources, SEC has booked in advance some 30GW of gas turbine capacity with the industry's leading original equipment manufacturers (OEMs) in anticipation of domestic and overseas demand for gas-fired generation power plants.

One of the sources said potential projects in Saudi Arabia will be developed through a bilateral agreement with SPPC and potentially in partnership with Saudi utility developer Acwa Power. 

MEED understands SEC and SPPC have appointed a financial adviser to support the development of these future projects.

A team comprising SEC and Acwa Power bid and won the contracts to develop and operate the Qassim 1 and Taiba 1 independent power projects last year. Each plant has a capacity of 1,800MW. The two projects are valued at SR14.6bn ($3.9bn).

A team that includes SEC is also expected to bid for the contracts to develop the Remah 1 and 2 and Nairiyah 1 and 2 gas-fired IPP projects being tendered by SPPC. 

Ratings upgrade

On 24 May, Fitch Ratings upgraded SEC's ratings from A to A+, aligning it to be on par with the national sovereign rating.

SEC said: "The upgrade recognises SEC’s stable financial profile which is secured by the conversion of SR168bn of SEC's liabilities into equity-like instruments, the company’s leverage headroom and strong cash flow visibility, and its crucial role in KSA's energy plans".

It added that the upgrade "was driven by….SEC’s robust decision-making, strong government support, and alignment with national policy".

"The government’s 81% ownership, strategic oversight and SEC's key role in Saudi Arabia's decarbonisation efforts underscore this support."

Notably, in April, the Japan Bank for International Cooperation (JBIC) signed a memorandum of understanding with SEC to strengthen their partnership.

JBIC said the MoU entails developing solutions to support SEC’s future projects through investments by Japanese companies, the introduction of Japanese products and technologies, and the provision of financial support.

Six-year capex

Last month, MEED reported that SEC was planning a SR472bn ($126bn) capital expenditure programme over the next six years to enhance the kingdom’s power generation, transmission and distribution infrastructure and to meet future demand growth.

The largest component of this spending drive is the transmission sector, with a planned investment requirement of SR351bn. A total of SR116bn is envisaged for the distribution sector.

A mere SR6.2bn is dedicated to power generation projects. This comparatively low amount is due to most new electricity production plants now tendered by SPPC under the kingdom’s public-private partnership (PPP) framework.

Related read: Saudi Arabia plans two new gas-fired power plants

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11912544/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait halves drilling contractor pool

    22 September 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

    Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

    The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

    The full list of contractors that are now qualified to participate in tenders is:

    • Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
    • Kuwait Drilling Company (Kuwait)
    • Sun Drilling Kuwait (Kuwait)
    • TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
    • United Precision Drilling (Kuwait)
    • Abraj Energy Services (Oman)
    • Adnoc Drilling Company (UAE)
    • Arabian Drilling Company (Saudi Arabia)
    • Anton Oilfield Services (China)
    • China Oilfield Services (China)
    • Egyptian Drilling Company (Egypt)
    • CNPC Bohai Drilling Engineering Company (China)
    • Great Wall Drilling Company (China)
    • John Energy (India)
    • Kerui Oilfield Service (China)
    • KCA Deutag Drilling (Germany)
    • Mohammed Al-Barwani Petroleum Services (Oman)
    • Nabors Drilling International (US)
    • National Drilling & Services Company (Oman)
    • Sea & Land Drilling Contractors (Oman)
    • Sinopec International Petroleum Service Corporation (China)
    • Karamay Jianye Energy (China)
    • Modern Drilling Company (Egypt)
    • Grey Wolf Drilling International (US)

    An earlier list, which was published on 11 February, included 51 qualified companies.

    The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg
    Wil Crisp
  • Abu Dhabi expects 45% emissions cut as electricity demand rises

    21 September 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

    The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

    The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

    Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

    The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

    According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

    This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

    It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

    As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

    The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec. 

    The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19849749/main.jpg
    Mark Dowdall
  • Seven bid for Bahrain highway upgrade

    21 September 2026

    Register for MEED’s 14-day trial access 

    Seven contractors have submitted bids for the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade project.

    According to results published by the Bahrain Tender Board, the firms that have submitted bids include:

    • Nass Contracting Company
    • Haji Hassan Group
    • Almoayyed Contracting Group
    • Mohammed Abdulmohsen Al-Kharafi & Sons
    • Eastern Asphalt & Concrete Production
    • Cebarco Bahrain
    • Kingdom Asphalt

    The contract scope includes expansion works on 2 kilometres of the highway. It consists of a four-lane dual carriageway with service roads on both sides.

    The scope of works also includes excavation and backfill work, construction of stormwater drainage networks, a pumping station, installation of ducts for future utilities, upgraded street lighting, traffic signs and directional signage.

    The project aims to improve traffic capacity, reduce congestion and enhance safety along the transport corridor linking Manama with industrial zones.

    In April, MEED reported that Bahrain had approved a financing agreement framework to fund the construction of the next phase of the Sheikh Jaber Al-Ahmed Al-Sabah Highway upgrade.

    In March last year, the Kuwait Fund for Arab Economic Development and the Bahraini government signed a KD10m ($32.4m) loan agreement to fund the second phase of the project, which is expected to cost about $404m.

    This was followed in September 2025 by the appointment of US-based Parsons Corporation on a $1.5m contract to provide pre-contract engineering consultancy services for the project.

    According to data from regional project tracker MEED Projects, construction of the first phase was completed in 2020.

    A joint venture of local firm Nass Contracting and Kuwait’s KCC Engineering & Contracting undertook the main construction works.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19847073/main.png
    Yasir Iqbal
  • Teams prepare bids for Oman PPP wastewater project

    21 September 2026

     

    At least three consortiums are preparing bids for a contract to develop and operate two major sewage treatment plants (STPs) in Oman.

    The public-private partnership (PPP) project covers expanding two Muscat-based plants: the Al-Ansab STP (phase three) and the Al-Amerat STP (phase two). It will be delivered under a build-own-operate-transfer model.

    At Al-Ansab, capacity will increase from 125,000 cubic metres a day (cm/d) to 207,000 cm/d. At Al-Amerat, capacity will rise from 18,000 cm/d to 54,000 cm/d.

    According to sources, the bidders for the project include:

    • Etihad Water & Electricity (UAE) / Metito (UAE)
    • Lamar Holding (Bahrain) / Tawzea (Saudi Arabia)
    • Civil Works Company (CWC, Saudi Arabia)  / Suez (France)

    The bid submission deadline is 5 January 2027.

    State-owned Nama Water Services (NWS) issued a request for proposals for the project in July, as exclusively reported by MEED.

    It is understood that Veolia (France), Miahona (Saudi Arabia) and Samsung E&A (South Korea) are also among the firms that prequalified for the project after the request for qualifications was issued last November.

    The project scope includes the design, financing, construction, operation and maintenance of the new facilities, alongside the long-term operation of the existing facilities.

    It has been over a decade since the Al-Ansab STP first entered full operation at a capacity of about 54,000 cm/d. In 2015, South Korea’s Doosan Ennerbility, formerly Doosan Heavy Industries, was awarded the main engineering, procurement, and construction contract for the phase two expansion, which increased the facility’s maximum flow capacity to 125,000 cm/d. This phase was completed in 2017.

    Phase one of the Al-Amerat STP was awarded to a joint venture of France’s Degremont (Suez) and local contractor Al-Ansari Trading Enterprise under a design, build and short-term operation contract valued at about €50m ($58.1m). The plant was developed for Haya Water and commissioned in 2019 as part of the Muscat wastewater scheme.

    Haya Water, the former wastewater utility, was later incorporated into NWS following a government restructuring programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19794912/main.jpg
    Mark Dowdall
  • Oman reveals Sohar airport and Salalah Thumrait Road plans

    21 September 2026

    Oman is planning a new passenger terminal at Sohar Airport to expand regional air connectivity and strengthen the airport’s role in the national aviation network.

    According to Said Bin Hamoud Al-Maawali, Oman’s minister of transport, communications and information technology, new routes are expected to be announced before the end of the year. Potential destinations include Dammam in Saudi Arabia, Gwadar in Pakistan, and southern Iran.

    The planned terminal and additional routes will give residents of northern Oman more travel options.

    Al-Maawali also provided an update on the long-delayed Salalah-Thumrait truck road, saying the project will be procured through a conventional tendering model rather than a public-private partnership (PPP).

    In August 2023, Oman shortlisted five of eight prequalified teams to compete for the Salalah-Thumrait truck road project, which was set to be the sultanate’s first PPP road project.

    The 67-kilometre road project is specially designed for heavy vehicles. 

    The road is a key link in Dhofar’s transport network, connecting Thumrait with Salalah and supporting movement between the interior and the governorate’s main urban and economic centre.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19794881/main.jpg
    Yasir Iqbal