Arab News, Tue, May 07, 2024 | Shawwal 28, 1445
SEC closes $3bn financing for 3.6GW capacity power stations
Saudi Arabia:
Saudi Arabia’s power generation is poised for a substantial boost following the
successful closing of financing for two electricity projects, with a combined
capacity of 3.6 gigawatts.
The deals involving the Taiba 1 and Qassim 1
independent power producer projects, with a combined financing value of SR11.4
billion ($3.04 billion), signify a major milestone in Saudi Arabia’s energy
landscape, the Saudi Press Agency reported.
The two IPP projects, featuring combined cycle gas
turbine technology, were awarded to the Saudi Electricity Co. by the Saudi Power
Procurement Co. as part of an alliance with ACWA Power in October 2023.
Additionally, in November 2023, a 25-year power
purchase agreement was signed with the SPPC for both projects, which are being
developed on a build-own-operate basis.
Khalid Al-Qunun, CEO of SEC, commended the efforts
of the company’s team in driving transformation in the electric energy sector in
the Kingdom, the SPA report added.
He said: “These projects embody our ongoing
ambitions to expand energy generation projects and adopt the latest technologies
to ensure the provision of environmentally friendly energy solutions that
contribute to achieving the company’s zero neutrality target by 2050, in line
with the Kingdom’s ambitious aspirations in the field of energy
sustainability.”
The financing agreements were signed by the two
project companies: Sidra One for Electricity for the Taiba 1 station and Qudra
Energy for the Qassim 1 station. The SEC holds a 40 percent share in both
companies.
These modern stations represent a notable
advancement in electric energy production in the Kingdom. They signify an
important step toward a sustainable future by utilizing the latest energy
production technologies, such as combined cycle gas turbines known for their
high efficiency.
According to the SPA report, relying on these
advanced technologies contributes to improving generation efficiency, reducing
emissions, and reducing reliance on liquid fuels in the electricity production
sector in the Kingdom.
These stations mark the beginning of a series of
CCGT stations that will expedite the realization of Saudi Vision 2030 goals,
including achieving an optimal energy mix and increasing local content.
This also sets the stage for achieving the goals
of the Saudi Green Initiative, aiming for carbon neutrality by 2060. The
engineering design of these stations allows for the future integration of carbon
capture facilities, underscoring the SEC’s commitment to environmental, social,
and governance responsibility, the SPA report added.