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More gas power incoming: The Saudi Electricity Company (SEC) signed two 21-year power purchase agreements with the Saudi Power Procurement Company (SPPC) for two gas-fired power plants with a combined capacity of 3.36 GW, according to a disclosure. The agreements are valued at SAR 12.8 bn, with the financial impact expected to show up starting this year.
The details: The PP13 and PP14 gas-fired power plants will have 1.68 GW of output each, and will remain fully owned and operated by SEC.
Saudi is doubling down on gas: The 3.01 GW Qurayyah independent power project expansion reached financial close last week, with SAR 10.8 bn (c.USD 2.9 bn) in financing. SEC and Acwa Power signed a SAR 13.4 bn power purchase agreement with SPPC for the project back in February.
..with no signs of slowdown: Acwa Power secured a SAR 12.8 bn (USD 3.4 bn) financing package to support the development, construction, ownership, and operation of Rumah 1 and Nairyah 1 in August, with a combined capacity of 3.6 GW. Meanwhile, the Rumah 2 and Nairyah 2 will add 3.6 GW of capacity — 1.8 GW each — to the kingdom’s grid under a 25-year power purchase agreement with SPPC.
Why? Gas-fired combined-cycle plants can hit efficiency rates of up to 60%, compared to just 30% for crude-fired units. Natural gas currently fuels around 65% of Saudi Arabia’s electricity generation, while oil makes up roughly 32% — down from roughly half in a decade.
