Acwa Power reached financial close for two combined cycle gas turbine (CCGT) independent power producers, Rumah 1 and Nairyah 1, with a combined capacity of 3.6 GW, according to a press release. The company secured a SAR 12.8 bn (USD 3.4 bn) financing package to support the development, construction, ownership, and operation of the two plants.

The project details:

  • The Rumah 1, located in Riyadh Province, will see the construction of a CCGT power facility with a capacity of 1.8 GW. The plant will be developed under Remal Energy Company at SAR 6.4 bn (USD 1.7 bn).
  • The Nairyah 1, based in the Eastern Province, will add another 1.8 GW of capacity. Naseem Energy Company will lead its development and operation, with SAR 6.4 bn in funding.

The financing was arranged through a syndicate of local, regional, and international lenders. Participating institutions include the Export-Import Bank of Korea (Kexim), Saudi National Bank, Saudi Investment Bank, Banque Saudi Fransi, Standard Chartered Bank, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and Arab Petroleum Investment Corporation.

Who owns what? The Saudi Power Procurement Company is the principal buyer for the projects’ output under a 28-year agreement, overseeing tendering and power offtake. Project ownership is split between Acwa Power with a 35% share, Saudi Electricity Company with 35%, and Korea Electric Power Corp with 30%.

Acwa had a strong 1H: The company inked nine power purchase agreements totaling 20 GW, including 15 GW in July under the national renewable energy program, according to its earnings release. The company also achieved financial close on two additional projects worth SAR 2.4 bn. It has also just connected 2.8 GW of solar energy capacity to the Kingdom’s power grid last week.

Tags: