SEC-ACWA Power Consortium bags SAR 14.6 bln IPP projects

A consortium comprising Saudi Electricity Co. (SEC) and ACWA Power Co. received a notice on Oct. 24 from Saudi Power Procurement Co. (SPPC),awarding them the development of Taiba 1 and Qassim 1 Independent Power Plants (IPPs) using combined-cycle gas turbine technology, the companies said in separate statements to Tadawul.

The projects value is estimated to reach SAR 14.6 billion, the statements said, adding that Taiba 1 and Qassim 1 IPPs have capacity of 1.8 gigawatt each.

SPPC is a wholly state-owned limited liability Co. and the principal buyer of both projects, SEC noted, adding that the consortium is seeking to cooperate with SPPC and the other relevant parties to conclude 25-year energy procurement deals in November 2023.

Any updates will be announced, SEC said, noting that the related financial impact cannot be determined at present. The deal does not include any related parties.

These facilities will boast carbon capture and sequestration (CCS) readiness mechanisms in alignment with the Saudi Green Initiative, and the greenhouse gases (GHGs) net-zero goals by 2060, which will be achieved through the deployment of technologies for circular carbon economy approach.