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Saudi Power Procurement Company Offers Bid for 4 Power Generation Projects

SPPC projects are in line with the Kingdom's ambition to reach zero neutrality for greenhouse gases. (Asharq Al-Awsat)
SPPC projects are in line with the Kingdom's ambition to reach zero neutrality for greenhouse gases. (Asharq Al-Awsat)
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Saudi Power Procurement Company Offers Bid for 4 Power Generation Projects

SPPC projects are in line with the Kingdom's ambition to reach zero neutrality for greenhouse gases. (Asharq Al-Awsat)
SPPC projects are in line with the Kingdom's ambition to reach zero neutrality for greenhouse gases. (Asharq Al-Awsat)

The Saudi Power Procurement Company (SPPC) announced the launch for bids of four Independent Power Plant Projects with a total capacity of 7,200 MW.

The company indicated that the four projects are distributed across two power plants in the central region (Rumah1 and Rumah2) and two in the eastern region (Nairyah1 and Nairyah2), with a capacity of 1,800 MW per plant.

All the projects operate using natural gas combined cycle technology with provision for carbon capture unit readiness.

The company stated that these projects align with the Saudi Green Initiative, and its ambition is to achieve net-zero greenhouse gases (GHGs) through the circular carbon economy approach by 2060.

It is part of the Saudi energy sector's endeavors to achieve Vision 2030 goals of improving generation efficiency and reducing costs through diversifying energy production sources.

The goal is to reach the optimal energy mix for electricity production and reduce the amount of liquid fuel used by the country's electricity production sector to achieve the optimal energy mix for electricity production in the Kingdom from renewable energy and gas at 50% for each of them.

In November, under the supervision of the Ministry of Energy, the SPPC signed Power Purchase Agreements (PPAs) for the Taiba 1, Taiba 2, Qassim 1, and Qassim 2 Independent Power Plants (IPP) with a capacity of 1,800 MW each.

The PPAs for the Taiba 1 and Qassim 1 IPP, with a total capacity of 3,600 MW, were signed with a consortium consisting of the Saudi Electricity Company (SEC) as a Managing Member and ACWA Power as a Technical Member.

Additionally, the PPAs for the Taiba 2 and Qassim 2 IPPs, with a total capacity of 3,600 MW, were signed with a consortium consisting of al-Jomaih Energy and Water Company as Managing Member, EDF as Technical Member, and Buhur for Investment Company as Consortium Member.

It comes in addition to the expansion project of Rabigh Power Plant, which consisted of adding a block of combined cycle gas turbine units with a capacity of 1,200 MW.

The Procurement Company previously approved the Saudi Electricity Company to implement this expansion project.

All projects, with a total capacity of 8,400 MW, will contribute to supplying power to around 3.5 million residential units annually.

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US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
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US Energy Secretary Says Riyadh and Washington to Sign Civil Nuclear Agreement

US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili
US Energy Secretary Chris Wright speaks at the press conference in the Saudi capital Riyadh. Photo: Turki al-Aqaili

The United States and Saudi Arabia will sign a preliminary agreement on energy cooperation and civilian nuclear technology, US Energy Secretary Chris Wright said on Sunday.

Wright spoke at a press conference in the Saudi capital Riyadh where he arrived from the United Arab Emirates on Saturday as part of a regional tour that will also take him to Qatar.

His visit comes amid world economic turmoil over the tariffs imposed by US President Donald Trump. But Wright said that these tariffs don’t seek to restrict trade, rather they aim for fair and reciprocal trade.

His visit also comes ahead of an expected visit by Trump to the Kingdom, the UAE and Qatar in May to consolidate relations.

The US Energy Secretary told journalists at the Saudi Energy Ministry that Riyadh and Washington were on a "pathway" to reaching an agreement to work together to better develop energy resources and energy infrastructure, in addition to mining cooperation, civilian nuclear technology and energy production.

Wright said further details over a memorandum detailing the energy cooperation between Riyadh and Washington would come later this year.

Saudi Minister of Energy Prince Abdulaziz bin Salman announced last September that the Kingdom is working to develop peaceful uses for nuclear energy across various fields.

In his press conference on Sunday, Wright discussed the meetings he has held in Riyadh. There have “been very wide ranging dialogues for a day and a half now and they're going to continue. We've talked about energy in all aspects of energy. We've talked about mining, critical materials. We've talked about processing in industry. We've talked about climate change. We've talked about human lives and what drives their improvement and how best to achieve those ends,” he said.

On Saturday, Prince Abdulaziz met with Wright at King Abdullah Petroleum Studies and Research Center (KAPSARC) where the US official was briefed on the Center's role in the fields of energy policy research and its transitions, climate change, sustainable transportation, and consultancy services, in addition to the development of models and analytical tools that contribute to finding solutions to current challenges in the energy sector. They also discussed opportunities for cooperation in energy research, exchange of expertise, and strengthening joint research efforts.

Wright said Sunday that he believed “Saudi Arabia will be one of the leading countries in investing in the United States. I think that's a win for the Kingdom here. It's a win for the United States. And for us, most importantly, it's a win for the working class and American citizens to have better job opportunities.”

He added that the “broader objectives” of the US and Saudi Arabia “are prosperity at home and peace abroad.”

Wright also said in response to a question by Asharq Al-Awsat that tariffs are part of Trump's economic agenda.

He said Trump is trying to grow the flow of goods outside the United States into other countries while sustaining imports and engagement with countries from around the world. “So that's a way you could describe this. Fair trade, not restricted trade, just fair trade, reciprocal trade.”

He added that the United States has seen a lot of its intensive industries, particularly energy, move outside of the country and be outsourced somewhere else. “Too many Americans have seen their job opportunities shift overseas.”

“So tariffs are also a way to give a nudge and encourage investment into our country, to make products in our country, to grow economic opportunity and prosperity in America.”