TAQA, JERA and Al Bawani Capital have signed two 25-year power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC).
The agreements will see the development of more than 3.6GW of new greenfield combined cycle gas turbine (CCGT) power projects in the country.
The PPAs are a follow-up to SPPC's contract awards for the 1.8GW Rumah 2 and 1.8GW Al Nairyah 2 conventional independent power producer (IPP) projects.
The consortium of TAQA, JERA and Al Bawani was selected for these initiatives, which will utilise CCGT turbines and incorporate carbon capture technologies.
The projects align with Saudi Arabia's energy strategy, which targets an optimal energy mix for electricity production.
By 2030, the country aims to generate 50% of its electricity from renewable sources and the other 50% from gas technology.
The proposed power plants also support the Saudi Green Initiative, which seeks to achieve net zero greenhouse gas emissions through the circular carbon economy by 2060 or sooner, depending on the progression of necessary technologies.
Special purpose entities owned by TAQA (49%), JERA (31%) and Al Bawani (20%) will develop the two new plants.
Operation and maintenance (O&M) of the plants will be managed by the partners through respective O&M special purpose entities, maintaining the same shareholding structure.
In early 2024, TAQA and JERA achieved financial close on a new industrial steam and electricity cogeneration plant.
The facility will supply electricity and steam to a petrochemical complex in Jubail, in the Eastern Province of Saudi Arabia.
TAQA generation business CEO Farid Al Awlaqi stated: “TAQA has ambitious growth targets of 150GW by 2030, and today’s announcement marks a major milestone for 2024 with the addition of a further 3.6GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia, making it five greenfield projects under development in TAQA’s portfolio.
“In addition to signing the PPAs, we are taking on the role of lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities.
“Today’s announcement of these two greenfield power projects cements TAQA’s position as a low carbon power and water champion and as a trusted and sustainable developer, investor and operator in several key markets.”
