ACWA Power Company has announced that the Al Morjan Two Electricity Company has secured $2.5bn (SR9.69bn) in financing for the expansion of the Rabigh 2 Independent Power Plant (IPP) in western Saudi Arabia.
Located 130km north of Jeddah in Rabigh, the project is set to add generation capacity of 2.3GW using a combined cycle gas turbine system and has been designed with readiness to install carbon capture units in the future.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The financing was provided by a consortium of regional, local and international lenders.
The group of lenders comprises the Abu Dhabi Commercial Bank PJSC, Alinma Bank, Boubyan Bank K.S.C.P., the Commercial Bank of Dubai PSC, Riyad Bank, Saudi Awwal Bank and the Saudi National Bank.
Also involved are the China Minsheng Banking Corp. Hong Kong Branch, HSBC Bank Middle East and the Industrial and Commercial Bank of China.
Further participants include the Industrial Bank Co. Beijing Branch, the National Bank of Greece (Cyprus), Standard Chartered Bank (Taiwan) and the Sumitomo Mitsui Trust Bank (London Branch).
ACWA holds a 40% stake in the development. The financing terms specify a duration of approximately 34 years.
Guarantees provided by ACWA for the financing are limited to its standby equity and reserve account.
The Rabigh 2 IPP is a greenfield build, own and operate project and is the fourth project under the Saudi Electricity Company’s (SEC) IPP scheme.
It will supply power to the SEC, using natural gas as its primary fuel. The plant is reported to deliver a gross thermal efficiency of around 58.8% under reference conditions.
In addition to power generation, the expansion includes upgrades to a 380kV electrical substation, supporting the national grid.
According to ACWA, the financial impact of the project’s operations is set to begin from the second quarter of 2029.
The project follows previous IPP initiatives and is the first in the series to incorporate combined cycle technology at this scale in the country.
In April 2026, ACWA and the Saudi Power Procurement Company signed a power purchase agreement for expanding the Rabigh 2 IPP project.
