Two bid for Remah and Nairiyah IPP schemes

21 August 2024

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Two consortiums have submitted bids for the contracts to develop and operate four combined-cycle gas turbine (CCGT) power generation plants in Saudi Arabia with a total combined capacity of 7.2GW.

The four independent power producer (IPP) projects, each with a generation capacity of 1,800MW, are:

  • Remah 1
  • Remah 2
  • Al-Nairiyah 1
  • Al-Nairiyah 2

Remah 1 and 2, previously known as PP15, will be located in Saudi Arabia’s Central Region, while Al-Nairiyah 1 and 2 will be in the Eastern Region.

According to a source close to the projects, the teams that submitted bids to develop and operate these projects are:

  • Abu Dhabi National Energy Company (Taqa, UAE) / Jera (Japan) 
  • Acwa Power (local) / Korea Electric Power Corporation (Kepco, South Korea) / Saudi Electricity Company (SEC, local)

The principal buyer, Saudi Power Procurement Company (SPPC), previously indicated that the four power plants would operate using natural gas combined-cycle technology with a carbon capture unit readiness provision.

The four power generation facilities will be developed using a build-own-operate (BOO) model. 

SPPC’s transaction advisory team for the Remah 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. 

As MEED reported, SPPC has also started preparing for the next batch of gas-fired IPPs that it plans to tender.

The principal buyer is understood to have received bids for the financial, legal and technical consultancy roles for the Al-Rais and Riyadh 16 IPPs. The Al-Rais IPP will have a capacity of 2,400MW, while the Riyadh 16 IPP has a planned capacity of 3,600MW.

Awarded gas IPPs

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

A consortium comprising Saudi Electricity Company 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. 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 will be 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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