• | 1:00 pm

Saudi Arabia’s power sector gets $3.9 billion boost with ACWA Power deal

The agreement covers two 1,800-megawatt combined cycle gas turbine plants in Taiba and Qassim

Saudi Arabia’s power sector gets $3.9 billion boost with ACWA Power deal
[Source photo: Anvita Gupta/Fast Company Middle East]

Now accepting applications for Fast Company Middle East’s Best Workplaces For Women 2023. Click here to register.

ACWA Power’s recent agreement with Saudi Power Procurement Co (SPPC) underscores its continuous expansion in the energy sector. To enhance Saudi Arabia’s energy landscape and ensure a brighter and more sustainable future, ACWA Power has signed a $3.9 billion energy purchasing deal with SPPC.

This agreement sets the stage for constructing two combined cycle gas turbine (CCGT) power plants in Taiba and Qassim. Each plant is designed to generate an impressive 1,800 megawatts of power.

Strategically positioned, these facilities will play a crucial role in addressing the increasing demand for electricity in Saudi Arabia, providing power to around 3.6 million homes upon completion. The long-term contracts extend over 25 years.

ACWA Power’s recent initiative in Saudi Arabia builds on its success in Dubai, where it secured a 30-year water purchase agreement with the Dubai Electricity and Water Authority (DEWA). This agreement is for developing the first phase of the seawater reverse osmosis (SWRO) plant at Hassyan. The project is anticipated to enhance DEWA’s water desalination capacity to 670 million imperial gallons per day (MIGD) by 2027, a substantial increase from the current 490 MIGD.

In addition to these projects, SPPC has unveiled two large-scale solar photovoltaic (PV) initiatives, boasting a combined capacity to power 265,000 homes annually. These announcements spotlight the kingdom’s increasing emphasis on diversifying its energy mix and adopting sustainable power solutions.

The Tabarjal solar PV independent power plant is set to generate 400 MW, and the Al-Henakiyah solar PV project will contribute 1,100 MW. Both projects come with a 25-year agreement duration. These substantial solar initiatives mark a significant stride in Saudi Arabia’s journey toward a more sustainable energy future.

More Top Stories: