Taiba 2 and Qassim 2 IPPs to reach financial close
29 May 2024
A team led by local utility developer Al-Jomaih Energy & Water Company (Jenwa) is expected to reach financial close in June for the Taiba 2 and Qassim 2 independent power producer (IPP) projects in Saudi Arabia.
“They need to sign the contract with the engineering, procurement and construction (EPC) team first before they [can] reach financial close,” said a source familiar with the project.
MEED reported in January that the Jenwa-led consortium has tapped a group of Chinese companies for the projects’ EPC contracts.
They comprise China Energy Construction International Group, Guangdong Engineering Institute and Zhejiang Thermal Power.
The Qassim 2 and Taiba 2 combined-cycle gas turbine (CCGT) plants will each have a power generation capacity of 1,800MW.
In November, the developer team, which includes France’s EDF and the local Buhur for Investment, signed a 25-year power-purchase agreement with the principal buyer, Saudi Power Procurement Company (SPPC), for the Taiba 2 and Qassim 2 IPP projects.
MEED understands that the Jenwa-led consortium has partnered with Germany’s Siemens Energy for the supply of CCGT units for the projects.
Taiba 1 and Qassim 1
SPPC announced the winning bidders that will develop and maintain four new thermal IPP projects in the kingdom in October last year.
Saudi Electricity Company (SEC) and Saudi utility developer Acwa Power won the contract to develop and operate the 1,800MW Qassim 1 and 1,800MW Taiba 1 IPP projects.
According to a previous filing by Acwa Power on the Saudi Stock Exchange (Tadawul), the two projects are valued at SR14.6bn ($3.9bn).
China’s Sepco 3 will undertake the EPC contract for the Qassim 1 and Taiba 1 IPP projects, as MEED previously reported.
US-based GE will supply the CCGT for the power plants.
SPPC has yet to disclose the levelised electricity costs submitted by the contract bidders. The four CCGT plants are valued at a combined estimate of SR29.2bn.
The winning consortiums will develop each project on a build, own and operate basis, and the successful bidders will 100% own it.
According to SPPC, the latest turbines will be used to allow the project owners to use carbon-capture technologies.
Packaged initially as two individual IPPs, each with a capacity of 3,600MW, the two projects have been split into four smaller schemes.
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