Saudi Arabia Finalizes Financing for 3.6 Gigawatt Power Ventures

Saudi Arabia Finalizes Financing for 3.6 Gigawatt Power Ventures

By Staff Writer, 08 May 2024

Saudi Arabia is set to ramp up its power generation capacity with the successful finalization of financing for two significant electricity projects, boasting a combined output of 3.6 gigawatts.

According to a report by the Saudi Press Agency (SPA), the completion of financing for the Taiba 1 and Qassim 1 independent power producer (IPP) projects marks a pivotal moment in the nation's energy landscape.

These projects, valued at SR11.4 billion ($3.04 billion), represent a substantial investment in Saudi Arabia's power infrastructure.

Awarded to the Saudi Electricity Co. (SEC) by the Saudi Power Procurement Co. in collaboration with ACWA Power in October 2023, the two IPP projects will utilize combined cycle gas turbine technology.

Furthermore, a 25-year power purchase agreement was inked with the Saudi Power Procurement Co. in November 2023 for both projects, which are being developed on a build-own-operate basis.

Khalid Al-Qunun, CEO of SEC, applauded the dedication of the company's team in spearheading transformative initiatives in the Kingdom's electric energy sector.

He emphasized the significance of these projects in aligning with Saudi Arabia's ambitious goals for energy sustainability, aiming for zero neutrality by 2050.

The financing agreements were formalized by the project companies: Sidra One for Electricity for the Taiba 1 station and Qudra Energy for the Qassim 1 station, in which SEC holds a 40 percent stake.

These state-of-the-art stations represent a leap forward in electric energy production in Saudi Arabia, embodying a commitment to embracing cutting-edge technologies for enhanced efficiency.

With the utilization of combined cycle gas turbines, known for their environmental friendliness and high efficiency, these projects mark a significant stride toward a sustainable energy future for the Kingdom.

Source: Arab News

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