Acwa signs SAR 11.5 bn power purchase agreement for Rabigh 2 expansion

Acwa inked a SAR 11.5 bn long-term power purchase agreement with the Principal Buyer for the Rabigh 2 IPP expansion, according to a disclosure. The combined cycle gas turbine plant will add some 2.3 GW capacity to the system.

What it covers: The contract includes the development, financing, construction, ownership, and operation, alongside a 380 kV substation extension to integrate the plant into the grid. Acwa holds 40%, while Saudi Energy — previously the Saudi Electricity Company — owns 40%.

Rabigh 2 isn’t a new development — it’s an expansion of an existing independent power project that has been operating for years under Saudi Arabia’s private power model. The original project dates back to 2013. In parallel, theRabigh 1 project remains active, where Saudi Energy signed a 25-year energy conversion agreement with the Principal Buyer to purchase power from the 1.2 GW, SAR 5.33 bn expansion project earlier in January.

Why it matters: Gas-fired combined-cycle plants can hit efficiency rates of up to 60%, compared to just 30% for crude-fired units — complementing the Kingdom’s liquid fuel displacement program.