Saudi Electricity Company And ACWA Power Finalise Power Purchase Agreement For Qurayyah IPP Expansion Project

The Saudi Electricity Company (SEC) and ACWA Power have entered into a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) for the Qurayyah Independent Power Plant (IPP) Expansion Project. This project involves constructing a Combined Cycle Gas Turbine (CCGT) power plant in Qurayyah, Eastern Saudi Arabia. The plant will have a production capacity of 3,010 megawatts (MW) and is prepared to incorporate a carbon capture unit.

The initiative is valued at SAR13.4 billion, with SEC and ACWA Power each holding a 40% stake. This project aims to boost energy reliability and sustainability in Saudi Arabia by using advanced gas turbine technology in a combined cycle system. This approach will replace oil-based power generation with more sustainable options, reducing carbon emissions and supporting environmental conservation efforts.

This expansion aligns with Saudi Vision 2030's sustainability goals by promoting cleaner energy sources. The project is one of the largest power generation initiatives in the Kingdom, involving the development, financing, construction, ownership, and operation of a gas-fired combined cycle power plant. Additionally, it includes developing and transferring a 380 kV electrical substation.

SEC is recognised as the largest producer, transmitter, and distributor of electrical power in the Middle East and North Africa. It serves over 11 million customers as Saudi Arabia's primary electricity provider. Meanwhile, ACWA Power holds the title of the world's largest water desalination company and is a leader in energy transition and green hydrogen development.

The collaboration between SEC and ACWA Power highlights their commitment to advancing energy solutions that align with environmental goals. By investing in this project, both companies demonstrate their dedication to reducing reliance on oil-based power generation while enhancing energy security in the region.

This strategic partnership underscores the importance of transitioning to more sustainable energy sources to meet future demands. The use of cutting-edge technology in this project not only supports environmental protection but also contributes to economic growth by creating jobs and fostering innovation within the energy sector.

By focusing on cleaner energy alternatives, this initiative plays a crucial role in achieving long-term sustainability objectives outlined in Saudi Vision 2030. The project's success will serve as a model for future developments aimed at balancing economic growth with environmental responsibility.

With inputs from SPA