ACWA Power and Saudi Electricity Company (SEC), in collaboration with Korea Electric Power Corporation (KEPCO), have announced the financial close of the Rumah 1 and Nairyah 1 Independent Power Producer (IPP) projects, representing a total investment of approximately SAR15bn (US$4bn).
The Rumah 1 IPP project involves the development of a 1.8 CCGT power plant in Riyadh Province, Saudi Arabia. This facility will be developed and operated by Remal Energy Company, the project company. Similarly, the Nairyah 1 IPP project includes the construction of a second 1.8 GW CCGT power plant located in the Eastern Province of the country. The project will be implemented by Naseem Energy Company, which will act as the project company.
The Saudi Power Procurement Company (SPPC) will serve as the principal buyer for both projects, overseeing the tendering process and the long-term purchase of electricity generated by the plants. Ownership of the two project companies is divided among the three partners, with ACWA Power and Saudi Electricity Company each holding a 35% stake, while KEPCO holds the remaining 30%. Additionally, both plants have been designed to allow for the future integration of carbon capture technologies.
Saudi Arabia has set a target of achieving 50% renewables in its power mix by 2030 and reaching net-zero emissions by 2060.