In an effort to transition towards cleaner energy sources, Saudi Arabia has made significant strides by striking a lucrative deal with Siemens Energy for the maintenance of two new gas-fired power plants. Valued at approximately $1.5 billion, the agreement spans a 25-year period and is a part of the kingdom’s broader environmental goals.
Siemens Energy will not only maintain these facilities but will also provide advanced power plant technologies. Once operational, these plants are expected to contribute nearly 4 gigawatts of electricity to Saudi Arabia’s grid. Named Taiba 2 and Qassim 2, these plants will be situated in the western and central regions of the country and are slated for completion in the coming years.
Each plant will be equipped with Siemens’ gas turbines, capable of generating 2 gigawatts of power per site. The initial connection to the grid is scheduled for 2026 in a simple cycle mode, with a transition to combined cycle operations the following year.
These modern power plants are intended to replace older facilities that predominantly run on oil. According to Siemens Energy, the new gas-fired plants are projected to cut CO₂ emissions by up to 60% when compared to their oil-fueled counterparts, marking a significant step in Saudi Arabia’s journey towards a more sustainable future.
Karim Amin, a member of Siemens Energy’s executive board, highlighted that the new projects align with Saudi Arabia’s Vision 2030, which aims to transform the kingdom into a leading global economic hub. He emphasized the reliable energy supply and sustainable development that these plants will support.
Amin also mentioned the significance of Siemens’ local service hub in Dammam, emphasizing its role in expanding and localizing technological advancements within Saudi Arabia.
Additionally, the country is exploring the expansion of its renewable energy portfolio, with plans to develop an impressive 106 gigawatts of offshore wind capacity across its coasts. Although currently home to only one onshore wind farm, Saudi Arabia’s renewable energy targets are ambitious, aiming to source half of its energy from renewables by 2040.
In pursuit of environmental leadership and in line with global efforts to combat climate change, Saudi Arabia has declared its intention to reach net-zero carbon emissions by 2060. This commitment is backed by a series of initiatives under the Saudi Green Initiative, which include projects projected to reduce carbon emissions by more than 278 million tonnes annually by 2030.