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

 

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Jennifer Aguinaldo
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    Engineering firms have submitted bids to Al-Khafji Joint Operations (KJO) for a tender covering project management consultancy (PMC) for the multibillion-dollar Dorra gas field facilities development project.

    MEED reported last March that KJO was pushing forwards with a project to produce gas from the Dorra offshore field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.

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    ALSO READ: Adnoc Gas capex budget to rise to $28bn by 2029

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

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    To see previous issues of MEED Business Review, please click here
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    Saudi Arabia's Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, have started the prequalification process for the development of the Qiddiya high-speed rail project in Riyadh.

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    The clients are considering undertaking the project using a public-private partnership (PPP) model or under an engineering, procurement, construction and financing basis.

    Firms have been asked to prequalify for either of the two models.

    The Qiddiya high-speed rail project will connect King Salman International airport and King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Also known as Q-Express, the railway line will travel at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole – which is understood to include the Public Investment Fund’s proposed 2-kilometre-tall tower – and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November last year, MEED reported that over 145 local and international companies had expressed their interest in developing the project.

    These included 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

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    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 


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

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