Riyadh Enhances Electrical Infrastructure with Significant Investment in Energy Projects
With a combined capacity of 3.6 gigawatts, Saudi Arabia’s electricity production is set for a significant expansion, thanks to the completion of financing for two critical energy projects. These projects, Taiba 1 and Qassim 1, have secured a joint financial investment of SR11.4 billion ($3.04 billion), marking a transformative moment for the nation’s energy sector.
The independent power producer (IPP) initiatives, which utilize cutting-edge combined cycle gas turbine technology, were entrusted to the Saudi Electricity Co. in partnership with ACWA Power in October 2023 by the Saudi Power Procurement Co.
Subsequently, in November 2023, a 25-year power purchase agreement was established with the SPPC for the development of both projects on a build-own-operate model.
SEC’s CEO, Khalid Al-Qunun, lauded the company’s team for spearheading changes within the electric energy domain in the Kingdom. He highlighted the projects’ alignment with the nation’s drive towards energy sustainability and the company’s goal of achieving carbon neutrality by 2050.
The financial agreements were finalized by Sidra One for Electricity and Qudra Energy, the entities behind the Taiba 1 and Qassim 1 stations, respectively. Notably, SEC has a 40 percent stake in these entities.
These state-of-the-art facilities mark significant progress in the Kingdom’s electricity generation, leveraging the latest technologies to promote efficiency and environmental sustainability.
Utilization of such advanced technologies is anticipated to enhance generation efficiency, cut emissions, and diminish dependence on liquid fuels within the Kingdom’s electricity production sector.
The launch of these stations is just the beginning, as they pave the way for a succession of CCGT stations that will fast-track the achievement of Saudi Vision 2030’s objectives, such as optimizing the energy mix and bolstering local content.
In alignment with the Saudi Green Initiative, which targets carbon neutrality by 2060, these projects are designed to accommodate future carbon capture integration, showcasing SEC’s dedication to environmental, social, and governance standards.