Saudi Arabia: Saudi Power Procurement Co. has inked two 25-year power purchase agreements with a consortium comprising Abu Dhabi National Energy Co., or TAQA, Japan’s JERA Co., and the Kingdom’s Al Bawani Capital.  

The deals follow the consortium’s successful bid earlier this month to develop two gas-fired power plants, Rumah 2 and Al Nairyah 2, with a combined capacity of over 3.6 gigawatts on a build, own, and operate basis in Saudi Arabia, the Emirates News Agency reported. 

Both plants, each with a 1.8 GW capacity, will feature advanced combined cycle gas turbine technology and support the integration of carbon capture systems, aligning with Saudi Arabia’s energy transition goals under Vision 2030. 

The projects support the Kingdom's energy mix goals, which aim to meet power demand with a balanced split of 50 percent renewable energy and 50 percent gas technology by the end of this decade. 

Farid Al-Awlaqi, CEO of TAQA’s Generation business, said: "TAQA has ambitious growth targets of 150 GW by 2030, and today's announcement marks a major milestone for 2024 with the addition of a further 3.6 GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia, making it five greenfield projects in the Kingdom under development in TAQA’s portfolio.” 

He added: “In addition to signing the PPAs, we are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities.”  

The CEO said the announcement of these two greenfield power projects reinforces TAQA's role as a sustainable developer and operator in key markets. 

The two plants will be developed by special purpose entities jointly owned by TAQA with 49 percent, JERA with 31 percent, and Al Bawani with 20 percent. 

Operation and maintenance of the facilities will also be managed by these entities. 

"In line with JERA’s goal to achieve net zero by 2050, the award of these two high-efficiency independent power projects, featuring state-of-the-art HL class gas turbines, reinforces JERA’s commitment to decarbonizing thermal power generation,” said Steven Winn, chief global strategist, JERA.  

Fakher Al-Shawaf, group CEO of Al Bawani Holding, emphasized that the partnership with TAQA and JERA on these “state-of-the-art" power plants marks a transformative milestone for Al Bawani, reinforcing its commitment to advancing the Kingdom’s energy diversification initiatives.  

“This project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030,” he added.