ACWA Power, in partnership with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO), has announced the financial close of the Rumah 1 and Nairyah 1 Independent Power Producer (IPP) projects, with a combined investment of around SAR 15 billion (USD 4 billion).
The projects, with a total capacity of 3,600 MW, will be developed under two project companies – Remal Energy Company and Naseem Energy Company – jointly owned by ACWA Power (35%), SEC (35%), and KEPCO (30%). The Saudi Power Procurement Company (SPPC) serves as the principal buyer, overseeing project tendering and power offtake.
The Rumah 1 IPP, valued at SAR 7.5 billion (USD 2 billion), involves the construction of a 1,800 MW combined cycle gas turbine (CCGT) plant in Riyadh Province. Similarly, the Nairyah 1 IPP, with equal investment, will establish a 1,800 MW CCGT plant in the Eastern Province.
Financing was secured from a consortium of local, regional, and international lenders, including the Export-Import Bank of Korea (KEXIM), Saudi National Bank, Saudi Investment Bank, Banque Saudi Fransi, Standard Chartered Bank, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and Arab Petroleum Investments Corporation.
“These projects underscore investor confidence in ACWA Power’s strategic vision and track record in delivering sustainable power,” said Thomas Brostrom, Chief Investment Officer of ACWA Power. “The diverse financing pool reflects the bankability of these projects and their alignment with global sustainability goals.”
Abdulrahim Alharbi, Acting CEO of Energy Infrastructure Consortium Company (EICC), a subsidiary of SEC, added that the financial closure highlights the Kingdom’s credibility in attracting strategic energy investments. “These projects embody SEC’s vision to provide reliable, efficient, and environmentally responsible power while advancing Saudi Arabia’s energy transition goals under Vision 2030,” he said.
Designed with the flexibility to integrate carbon capture technologies in the future, the projects directly support the Ministry of Energy’s optimal energy mix plan, enhance local content contribution, and align with Saudi Arabia’s net-zero emissions target for 2060.
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