SPPC Announces Winning Bidders For Rumah-1 And Al-Nairyah-2 IPP Projects To Boost Saudi Arabia's Energy Capacity

The Saudi Power Procurement Company (SPPC) has revealed the successful bidders for four major power projects: Rumah-1, Rumah-2, Al-Nairyah-1, and Al-Nairyah-2. These initiatives are part of a strategic energy plan overseen by the Ministry of Energy. The aim is to meet future electricity demands, diversify energy sources, and reduce reliance on liquid fuels. By 2030, renewable energy and gas are expected to each contribute 50% to the Kingdom's electricity production.

The first consortium includes Saudi Electricity Company (SEC), ACWA Power, and Korea Electric Power Corporation (KEPCO). They have been awarded the contract for the Rumah 1 power plant, which will have a capacity of 1.8 GW. SEC acts as both managing and technical member, while ACWA Power and KEPCO are consortium members. Another consortium comprising Abu Dhabi National Energy Company PJSC (TAQA), JERA, and Al-Bawani secured the contract for Rumah 2, also with a capacity of 1.8 GW.

Similarly, SEC, ACWA Power, and KEPCO form another consortium that won the contract for Nairyah 1 power plant. This project also boasts a capacity of 1.8 GW. Meanwhile, TAQA, JERA, and Al-Bawani make up the fourth consortium that secured the Nairyah 2 power plant contract with an identical capacity of 1.8 GW.

Investment and Economic Impact

SPPC will engage in a 25-year power purchase agreement with each project company under a build, own, and operate model. The total investment is approximately SAR30 billion ($8 billion). These projects will adhere to localization requirements and contribute significantly to Saudi Arabia’s economy.

Technological Advancements in Projects

The projects will feature advanced Class H/J Gas Turbines known for high efficiency in Combined Cycle operations. They will also facilitate carbon capture technology readiness. These developments align with Saudi Vision 2030 goals and support the Saudi Green Initiative's ambition to achieve net-zero greenhouse gas emissions by 2060 or sooner.

SPPC plays a crucial role in preparing studies, tendering independent power projects, awarding contracts, and purchasing electrical energy from these projects under licenses issued by the Saudi Electricity Regulatory Authority. The projects are expected to supply electricity to around three million residential units annually.

With inputs from SPA