The Saudi Power Procurement Company (Principal Buyer), under the supervision of the Ministry of Energy, has announced the opening of the qualification process for the third round of conventional Independent Power Producer (IPP) projects based on Combined Cycle Gas Turbine (CCGT) technology. The projects will also be designed with readiness for future carbon capture units, supporting Saudi Arabia’s long-term energy transition goals.
Each project will be developed under the Build-Own-Operate (BOO) model. The selected consortium for each project will own 100% of the equity in a Special Purpose Vehicle (SPV), which will be responsible for developing, owning, and operating the power plant. Each SPV will sign a long-term Power Purchase Agreement (PPA) with the Principal Buyer for the sale of electricity.
The new round of projects is aligned with Saudi Vision 2030 and aims to support the sustainable growth of the Kingdom’s energy sector. The initiative follows the Circular Carbon Economy (CCE) approach, which promotes reducing emissions through advanced carbon management solutions. One of the key strategies is replacing liquid fuels with natural gas to lower carbon intensity while ensuring that the power plants are technically prepared for the future integration of carbon capture technologies. This supports Saudi Arabia’s national emissions reduction objectives.
The Principal Buyer is responsible for conducting preliminary studies, managing the tendering and award process for IPP projects, and purchasing electricity generated by energy projects across Saudi Arabia under the license issued by the Saudi Electricity Regulatory Authority (SERA).
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