Consortium signs $3.9bn Saudi power deals
14 November 2023
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A consortium comprising Saudi Electricity Company (SEC) and Saudi utility developer Acwa Power has won the contract to develop and operate two combined-cycle gas turbine (CCGT) power plants in Saudi Arabia.
The team signed the 25-year power-purchase agreements with the principal buyer, Saudi Power Procurement Company (SPPC), for the 1,800MW Qassim 1 and Taiba 1 independent power producer (IPP) projects on 13 November.
The team had received the conditional letter of award for the two contracts, according to a previous filing by Acwa Power on the Saudi Stock Exchange (Tadawul), where it indicated that 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, as MEED previously reported.
US-based GE will supply the CCGT for the power plants.
SPPC announced the winning bidders that will develop and maintain four new thermal IPP projects in the kingdom on 24 October.
A team comprising the local Al-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.
The four CCGT plants are valued at a combined estimate of SR29.2bn.
Each project will be developed on a build, own and operate basis by the winning consortiums, which will be 100 per cent owned by the successful bidders.
MEED understands the Al-Jomaih-led consortium has partnered with Germany’s Siemens Energy for the supply of CCGT.
According to SPPC, the project will use the latest turbines, allowing the Saudi utility company to utilise carbon-capture technologies.
Four consortiums submitted proposals to develop the Qassim 2 and Taiba 2 IPPs in late July, and the Qassim 1 and Taiba 1 IPPs on 15 August, as MEED reported.
The other consortiums that bid for the contracts were:
- Taqa (UAE) / Jera (Japan)
- Nebras (Qatar) / Marafiq (local) / Kepco (South Korea)
SPPC qualified over 20 companies to bid for the contracts, MEED reported in February.
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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