Minister of Energy, Saudi Electricity Company, ACWA Power, and KEPCO Signed Power Purchase Agreement
Saudi Electricity Company (SEC), ACWA Power, and Korea Electric Power Corporation (KEPCO) have announced the signing of a Power Purchase Agreement (PPA) with Saudi Power Procurement Company (SPPC) for two transformative 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 advancement in Saudi Arabia's journey toward a sustainable energy future.
Deploying state-of-the-art gas turbines within a combined cycle setup, these projects are designed to replace oil-based power generation processes, significantly reducing carbon emissions and enhancing environmental sustainability.
With a combined investment of approximately SAR 15 billion (USD 4 billion), the projects are also poised to drive economic growth by creating job opportunities and strengthening local content contributions.
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Engineer Khalid Salem AlGhamdi, Acting CEO of Saudi Electricity Company, stated: “This milestone agreement underscores SEC’s commitment to driving Saudi Arabia’s energy transition in alignment with Vision 2030 and the continuous support the company receives from His Royal Highness Prince Abdulaziz bin Salman, the Minister of Energy.
“By integrating cutting-edge technology and prioritizing sustainability, the Rumah 1 and Nairyah 1 projects demonstrate our leadership in delivering cleaner, more efficient energy solutions.
"These projects also lay the foundation for future innovations such as carbon capture, reaffirming SEC’s pivotal role in achieving the Kingdom’s ambitious net-zero emissions goals.”
Marco Arcelli, Chief Executive Officer of ACWA Power said: “The signing of the Power Purchase Agreements (PPAs) exemplifies the strength of collaboration in propelling our collective journey toward a sustainable energy future.
“These projects are representing an essential step in achieving the optimal energy mix objectives outlined in Saudi Vision 2030, while simultaneously aligning with the Saudi Green Initiative's goals for carbon neutrality.
“We are privileged to play a role in the Kingdom’s energy transformation by deploying efficient technologies that yield both economic and environmental advantages.”
Marco Arcelli, Chief Executive Officer of ACWA Power said: “The Rumah 1 and Nairyah 1 projects align with Saudi Arabia’s broader strategy to expand its Combined Cycle Gas Turbine (CCGT) infrastructure as part of achieving a balanced energy mix of renewables and gas-fired plants by 2030.
“Furthermore, the plants are designed to accommodate future carbon capture facilities, reinforcing their role in supporting the Saudi Green Initiative’s ambition of net-zero emissions by 2060.”
These projects symbolize Saudi Arabia’s commitment to sustainable energy practices and its vision of creating a cleaner, more resilient energy landscape.
By leveraging advanced technologies and fostering strong partnerships, SEC, ACWA Power, and KEPCO continue to play a key role in positioning Saudi Arabia as a global leader in energy transition and sustainability.
