Saudi Electricity Company, ACWA Power Sign Power Purchase Agreement for Qurayyah IPP Expansion Project

The Saudi Electricity Company (SEC) and ACWA Power have announced the signing of a Power Purchase Agreement (PPA) for the Qurayyah Independent Power Plant (IPP) Expansion Project with the Saudi Power Procurement Company (SPPC – Principal Buyer), a press release from SEC stated.

 The expansion involves the development of a Combined Cycle Gas Turbine (CCGT) power plant, located on the shore of Qurayyah in the Eastern Region of Saudi Arabia, with a production capacity of 3,010 megawatts (MW) and readiness to build a carbon capture unit. The total project value amounts to SAR13.4 billion.

 According to the release, SEC will hold a 40% stake, while ACWA Power will own an equal share in the project. The initiative aims to enhance energy reliability and sustainability in the Kingdom, utilizing cutting-edge gas turbine technology in a combined cycle system. This will allow the replacement of oil-based power generation with more sustainable alternatives, directly reducing carbon emissions and supporting environmental protection, in alignment with Saudi Vision 2030 and its ambitious sustainability targets.

 This project is among the largest power generation initiatives in Saudi Arabia, encompassing the development, financing, construction, ownership, and operation of a gas-fired combined cycle power plant, as well as the development, financing, construction, and transfer of a 380 kV electrical substation.

 "SEC is the largest producer, transmitter, and distributor of electrical power in the Middle East and North Africa, and Saudi Arabia's primary electricity provider, serving over 11 million customers. Meanwhile, ACWA Power is the world's largest water desalination company, a leader in energy transition, and a first mover in green hydrogen development," the release read.