The Saudi-based Aljomaih Energy & Water Company (AEC), in partnership with the Ajlan & Bros Group, the Buhur for Investment Company and the EDF Group, has achieved financial close on the Taiba-2 and Qassim-2 independent power plant (IPP) projects in Saudi Arabia.
The projects, with a combined capacity of 3.96GW, mark a significant step in Saudi Arabia’s energy sector.
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Their funding includes equity bridge financing and senior debt, sourced from a suite of regional and international banks.
Contributors to the package include the Saudi Awwal Bank, the Abu Dhabi Commercial Bank, the Commercial Bank of Dubai and First Abu Dhabi Bank.
Saudi Arabia aims to balance its electricity production mix by 2030.
The country plans to generate 50% of its electricity from renewable sources and the remaining 50% from highly efficient gas-fired plants.
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By GlobalDataThe strategy includes reducing reliance on liquid fuels for power generation and cutting carbon emissions by up to 278 million tonnes annually by 2030.
Aljomaih Energy and Water Company board of directors chairman Ibrahim Al Jomaih stated: “We are honoured to have been selected by the Saudi Power Procurement Company and the Ministry of Energy, KSA to act as consortium lead on the development of Taiba-2 and Qassim-2, the first combined cycle gas turbines with a provision for carbon capture in the Kingdom.”
In June 2024 Siemens Energy secured a $1.5bn (SR5.63bn) long-term maintenance contract for two gas-fired power plants in Saudi Arabia.
Taiba 2 and Qassim 2 will be developed in Saudi Arabia’s western and central regions.
The 25-year contract includes Siemens supplying advanced power plant technologies, which will contribute 4GW to Saudi Arabia’s energy capacity.
