Saudi Power Procurement Company Signs Major Power Purchase Agreements for Five Projects, Totaling 9200 MW.

Riyadh: In the presence of Minister of Energy and Chairman of the Board of Directors of Saudi Power Procurement Company, Prince Abdulaziz bin Salman bin Abdulaziz, the Saudi Power Procurement Company, also known as the 'Principal Buyer,' signed Power Purchase Agreements (PPAs) for five Independent Power Producer (IPP) Power Generation projects, with a combined capacity of 9200 MW. According to Saudi Press Agency, the new projects include the Rumah and Nairyah Thermal Energy projects, which employ flexible Combined Cycle Gas Turbine technology with natural gas as the main fuel. These projects have a total capacity of 7200 MW and include the potential to install carbon capture units. PPAs for the Rumah 1 and Nairyah 1 IPPs, each with a capacity of 1800 MW, were signed with a consortium comprising ACWA Power, Saudi Electricity Company (SEC), and Korea Electric Power Corporation (KEPCO). The Levelized Costs of Electricity (LCOEs) for these projects are 4.5859 Cents/kWh for Rumah 1 and 4.6114 Cents/kWh for Nairy ah 1. Further, PPAs for the Rumah 2 and Nairyah 2 IPPs, each also with a capacity of 1800 MW, were signed with a consortium of Abu Dhabi National Energy Company PJSC (TAQA), JERA, and local company Al-Bawani. The LCOEs for these projects are 4.5613 Cents/kWh for Rumah 2 and 4.4960 Cents/kWh for Nairyah 2. Both the Rumah and Nairyah Thermal Energy Projects are set to begin commercial operations in the second quarter of 2028. Additionally, the Al Sadawi Solar Photovoltaic Project, part of Round 5 of the National Renewable Energy Program (NREP), will provide a total capacity of 2000 MW. The PPA for this solar project was signed with a consortium consisting of Abu Dhabi Future Energy Company PJSC (Masdar), KEPCO, and GD Power Development Co. It is scheduled to commence commercial operations in the second quarter of 2027, offering clean power at a competitive LCOE of 1.2926 Cents/kWh. Overall, these projects are expected to attract investments amounting to approximately 35 billion Saudi Riyals (9.3 billion USD ), underscoring the energy sector's commitment to the objectives of Saudi Vision 2030. The NREP aims to achieve an optimal energy mix for electricity production, targeting around 50% each from gas and renewable energy by 2030, while replacing liquid fuels currently used in electricity production and other sectors in the Kingdom. By the end of 2024, the Kingdom of Saudi Arabia plans to have signed agreements for 25 renewable energy projects, spread across various regions and collectively generating around 23 gigawatts of electricity.