POWERCHINA Signs Agreement for 2,400 MW Rabigh 2 IPP Expansion Project in Saudi Arabia

POWERCHINA has marked a significant milestone in Saudi Arabia’s power infrastructure development with the signing ceremony for the 2,400 MW Rabigh 2 Independent Power Plant (IPP) Expansion Project, held on October 1, 2026, in Riyadh. The project is expected to strengthen the Kingdom’s electricity generation capacity, enhance grid reliability, and support the objectives of Saudi Vision 2030.

Located in Rabigh, Saudi Arabia, the project will have a total installed capacity of 2,400 MW, making it one of the largest gas-fired combined-cycle power generation projects in the region. The development is designed to address increasing electricity demand driven by industrial expansion, economic development, and population growth.

The project scope includes comprehensive design, engineering, procurement, equipment erection, construction, commissioning, and performance testing of the power plant. The facility will incorporate high-efficiency power generation technologies capable of operating in both simple-cycle and combined-cycle modes, providing operational flexibility to meet varying electricity demand.

Speaking at the signing ceremony, Peng Gang, President of POWERCHINA MENA, highlighted the company’s extensive experience in power engineering and its established track record in Saudi Arabia. He reaffirmed POWERCHINA’s commitment to working closely with project partners to ensure safe, efficient, and timely execution while maintaining high standards of engineering and construction quality.

The Rabigh 2 IPP Expansion Project is expected to play an important role in strengthening Saudi Arabia’s national electricity grid by improving power supply stability and reliability. Its flexible generation capabilities will also support the integration of increasing renewable energy capacity into the national power system, helping address grid stability challenges associated with variable renewable energy generation.

As part of Saudi Arabia’s broader national transformation programme, the project aligns with efforts to modernise energy infrastructure, enhance energy security, and support long-term economic diversification under Vision 2030.

Upon completion, the 2,400 MW power plant is expected to contribute to meeting the Kingdom’s growing electricity requirements while reinforcing Saudi Arabia’s position as a major regional energy and investment hub.