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Team taps Siemens Energy for Rumah 2 and Nairiyah 2

11 November 2024

 

A developer consortium comprising the UAE-based Abu Dhabi National Energy Company (Taqa), Japan’s Jera Company and the local Albawani Company is understood to have partnered with Germany’s Siemens Energy for the gas turbines to power the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.

The Rumah 2 and Nairiyah 2 combined-cycle gas turbine (CCGT ) power plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.

Siemens Energy is also supplying its HL-class gas turbines, along with a 25-year maintenance contract, for the Taiba 2 and Qassim 2 IPPs, which Saudi Arabia awarded in November last year to a team led by the local Al-Jomaih Energy & Water Company.

Principal buyer Saudi Power Procurement Company (SPPC) named the winning developer teams for its latest four CCGT IPPs on 7 November, more than two months after receiving bids in August.

The Taqa, Jera and Albawani team successfully bid for the contracts to develop and operate the Rumah 2 and Nairiyah 2 IPPs, while a consortium comprising Saudi Electricity Company (SEC), Riyadh-based utility developer Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) was named the winning bidder for the contracts to develop and operate the similarly-configured Rumah 1 and Nairiyah 1 IPPs.

Rumah 2 and Nairiyah 2 will be located in Riyadh and the Eastern Region, respectively.

The power generation projects will be developed using a build, own and operate (BOO) model over 25 years, with SPPC as the sole offtaker.

SPPC has not disclosed the levelised costs of electricity proposed by the developers for each of the four contracts.

SPPC previously indicated that the four power plants will operate using natural gas combined-cycle technology with a carbon-capture unit readiness provision.

SPPC’s transaction advisory team for the Rumah 1 and 2 and Al-Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

Awarded gas-fired IPPs

SPPC awarded contracts to develop four gas-fired power generation IPP projects last year.

A consortium comprising SEC and Acwa Power signed the 25-year power-purchase agreements with SPPC to develop and operate the Qassim 1 and Taiba 1 IPP projects on 13 November 2023. Each plant has a capacity of 1,800MW. 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, while US-based GE will supply the CCGT for the power plants. 

A team comprising 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.

Each project is being developed on a BOO basis by the winning consortiums, which will be 100% owned by the successful bidders.

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Jennifer Aguinaldo

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