Saudi Power signs PPAs for 5 projects with 9,200 MW capacity

Signing ceremony

Saudi Power Procurement Co. signed today, Nov. 18, agreements to purchase power from five independent solar photovoltaic and thermal projects totaling 9,200 megawatts (MW), state-run Saudi Press Agency (SPA) reported.

The projects include Rumah and Nairyah thermal energy utilizing flexible combined cycle gas turbine technology, using natural gas as main fuel, with the capacity to install carbon capture units, totaling 7,200 MW.

For more news and details on the projects

The power purchase agreements (PPAs)  for the Ramah-1 and Nairiyah-1 projects, each with 1,800 MW capacity, were signed with a consortium of ACWA Power Co., Saudi Electricity Co. (SEC), and Korea Electric Power Corp. (KEPCO). The levelized cost for Ramah-1 is 4.5859 cents/kWh and 4.6114 cents/kWh for Al Nairiyah-1.

PPAs for Ramah-2 and Nairiyah-2, each also 1,800 MW, were signed with Abu Dhabi National Energy Co. (TAQA), Japan’s JERA Co., and Al-Bawani Group. The levelized costs are 4.5613 cents/kWh for Ramah-2 and 4.4960 cents/kWh for Nairiyah-2.

The Rumah and Nairyah projects are scheduled to achieve commercial operation in Q2 2028.

The PPA for the 2,000 MW Al Sadawi solar photovoltaic project, part of round 5 of the National Renewable Energy Program (NREP), was signed with Abu Dhabi Future Energy Co. (Masdar), KEPCO and JD Energy Co. The project will begin operations in Q2 2027, with a levelized cost of 1.2926 cents/kWh.

The combined projects attracted investments worth SAR 35 billion, supporting Vision 2030 goals. NREP aims for a 50-50 energy mix of renewables and natural gas by 2030, reducing reliance on liquid fuels.

By year-end 2024, Saudi Arabia signed agreements for 25 renewable energy projects, totaling nearly 23 gigawatts across various regions.