The Saudi Power Procurement Company (SPPC) has announced the selected bidders for the conventional independent power projects (IPPs) Rumah-1, Rumah-2, Al-Nairyah-1, and Al-Nairyah-2. These projects are aligned with Saudi Arabia’s energy mix strategy, overseen by the Ministry of Energy, to meet future electricity demand, diversify energy sources, and reduce reliance on liquid fuels. The goal is to achieve a balanced energy mix by 2030, with renewable energy and natural gas each accounting for 50% of electricity generation.
The energy plan also promotes the localization of gas turbine manufacturing and integrates carbon capture readiness, supporting the Saudi Vision 2030 objectives. These projects align with the Saudi Green Initiative, which targets net-zero greenhouse gas emissions by 2060 or sooner through a circular carbon economy.
Rumah 1 Power Plant
A consortium of the Saudi Electricity Company (SEC), International Company for Water and Power Projects (ACWA Power), and Korea Electric Power Corporation (KEPCO) has been awarded the contract for the 1.8 GW Rumah 1 power plant. SEC will act as the managing and technical partner, while ACWA Power and KEPCO are consortium members.
Rumah 2 Power Plant
A consortium of Abu Dhabi National Energy Company PJSC (TAQA), JERA, and Al-Bawani secured the contract for the 1.8 GW Rumah 2 power plant. TAQA serves as the managing and technical member, with JERA and Al-Bawani as consortium members.
Nairyah 1 Power Plant
The consortium of SEC, ACWA Power, and KEPCO has also been awarded the contract for the 1.8 GW Nairyah 1 power plant, with SEC leading as the managing and technical member, supported by ACWA Power and KEPCO.
Nairyah 2 Power Plant
The consortium of TAQA, JERA, and Al-Bawani secured the 1.8 GW Nairyah 2 power plant contract. TAQA is the managing and technical member, joined by JERA and Al-Bawani.
SPPC will engage in 25-year power purchase agreements with each project company, structured on a build, own, and operate (BOO) basis, with a total investment of approximately SAR 30 billion ($8 billion). These plants will employ advanced Class H/J gas turbines in combined cycle operation, enabling carbon capture technology. Collectively, the projects will generate power for nearly 3 million residential units annually.
SPPC’s role includes conducting preliminary studies, tendering and awarding IPPs, and purchasing electrical energy from these projects within Saudi Arabia under a license from the Saudi Electricity Regulatory Authority.