Saudi Electricity Company (SEC), ACWA Power, and Korea Electric Power Corporation (KEPCO) have signed Power Purchase Agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for two major power generation projects: Rumah 1 and Nairyah 1. With a combined capacity of 3.6 GW, these Independent Power Plant (IPP) projects represent a significant step in advancing Saudi Arabia’s sustainable energy goals.
The projects, with an estimated investment of SAR 15 billion (USD 4 billion), will deploy advanced Combined Cycle Gas Turbine (CCGT) technology to transition from oil-based power generation to cleaner, more efficient methods. This shift is expected to reduce carbon emissions, enhance environmental sustainability, and drive economic growth by creating job opportunities and boosting local content.
Speaking on the occasion, Engineer Khalid Salem AlGhamdi, Acting CEO of SEC, highlighted the strategic importance of the projects, stating:
“This milestone agreement underscores SEC’s commitment to driving Saudi Arabia’s energy transition in alignment with Vision 2030. By integrating cutting-edge technology and prioritizing sustainability, the Rumah 1 and Nairyah 1 projects showcase our leadership in delivering cleaner, more efficient energy solutions.”
Marco Arcelli, CEO of ACWA Power, added:
“These projects are a pivotal step toward achieving the energy mix objectives outlined in Saudi Vision 2030 and the Saudi Green Initiative’s carbon neutrality goals. Through collaboration and innovation, we are proud to support the Kingdom’s energy transformation.”
The Rumah 1 and Nairyah 1 projects align with Saudi Arabia’s broader energy strategy to expand its CCGT infrastructure, ensuring a balanced mix of renewable and gas-fired power plants by 2030. Additionally, the plants are designed to integrate future carbon capture facilities, further supporting the Kingdom’s goal of achieving net-zero emissions by 2060 under the Saudi Green Initiative.
This initiative reinforces Saudi Arabia’s leadership in energy transition and sustainability, leveraging advanced technologies and strategic partnerships to build a resilient, eco-friendly energy landscape.
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