$7.8B Thermal Independent Power Producers Project Contracts Awarded to Initiate Construction of Four Power Plants

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Saudi Arabia’s principal power company, Saudi Power Procurement Company (SPPC) has awarded contacts to maintain and develop four thermal independent power producers project. The awarding of the contact involves the construction of four power plants that will use combined-cycle gas turbines. The construction of the projects is budgeted at a combined estimate value of SSR 29.2bn ($7.8bn). The companies awarded the projects are local companies which included a consortium of Saudi Electricity Company and International Company for Water and Power Projects (Acwa Power. The two companies won the contracts to develop the 1,800 MW Taiba 1 Independent Power Producers (IPP) . The contract also involved the construction of the 1,800 MW Qassim 1 IPP.

A team comprising the local Al-Jomaih Energy & Water, France’s EDF, and the local Buhur for Investment won the contract to develop the 1,800MW Taiba 2 Thermal Independent Power Producers . The companies were also mandated with the construction of Qassim 2 IPP. Each of the projects will be developed on a build-own operation basis by winning consortiums. This means the consortiums will be 100 percent owned by the successful bidders. Each of the contracted companies will enter a 25-year power purchase agreement (PPA) with the principal company, SPPC. The power plants will be installed with the latest power turbines from the United States’ GE company and Germany’s Germany’s Siemens Energy.

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The Construction Of the Thermal Independent Power Producers Power Plants will Supply Power to Approximately 3 Million Residential Units

Once completed, these projects will supply power to approximately 3 million residential units in Saudi Arabia annually. The classes of turbines that will be installed in the power plants’ construction will allow the Saudi Utility to utilize carbon capture technologies. This means which the power plants will facilitate in  environmental conservation. Four consortiums proposed to develop the Qassim 2 and Taiba 2 Thermal Independent Power Producers in late July. The Qassim 1 and Taiba 1 IPPs on the 15th of August 2024. Packaged initially as two individual IPPs, each with a capacity of 3600 MW, the two projects have been split into four smaller construction schemes