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Taiba 2 and Qassim 2 reach $3.9bn financial close

12 July 2024

A utility developer team led by the local Al-Jomaih Energy & Water Company (Jenwa) has reached financial close for the contract to develop and operate the Taiba 2 and Qassim 2 independent power projects (IPPs) in Saudi Arabia.

According to Jenwa, the two projects have been financed through a combination of equity bridge financing and senior debt, secured by Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank, Bank Saudi Fransi Bank, Arab Petroleum Investment Corporation (Apicorp(, Saudi Investment Bank, Bank Al-Jazira, Commercial Bank of Dubai and First Abu Dhabi Bank, for the approximate value of SR14.6bn ($3.9bn).

The Qassim 2 and Taiba 2 combined-cycle gas turbine (CCGT) plants will have a total combined capacity of  3,960MW.

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 projects in November 2023.

The team subsequently appointed an EPC team, led by China Energy International Group, to work on the project.

On 24 June, Germany's Siemens Energy confirmed an order, worth a total of $1.5bn, to supply its HL-class gas turbines along with a 25-year maintenance contract for two  Taiba 2 and Qassim 2 IPPs.

China Energy International Group awarded the contract to Siemens Energy.

According to Siemens Energy, the Taiba 2 and Qassim 2 power plants will be initially connected to the grid in simple cycle mode in 2026 and will be permanently operated as a combined cycle power plant one year later.

The new plants are expected to save up to 60% of carbon dioxide (CO2) emissions compared with oil-fueled power plants.

They will also be compatible with Saudi Arabia's energy strategy, which calls for the construction of CO2 capture and storage facilities in the medium term, to enable a carbon-neutral energy supply.

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Jennifer Aguinaldo

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