ACWA Power, SEC and KEPCO close on 3.6GW Saudi power projects

ACWA Power, the Saudi Electricity Company (SEC) and the Korea Electric Power Corporation (KEPCO) have announced financial close on two major independent power producer (IPP) projects in Saudi Arabia.

Rumah 1 and Nairyah 1 represent a combined investment of SR15bn ($4bn).

With a total capacity of 3,600MW, the projects align with the Kingdom’s energy mix plan to ensure a reliable power supply and enhance local content, set out in the Saudi Vision 2030.

The projects further support ACWA Power’s own target of net zero by 2050 and the country’s commitment to net-zero emissions by 2060.

Financing for these projects was sourced from a consortium of local, regional and international banks, including an export credit agency.

The lenders are the Agricultural Bank of China, Arab Petroleum Investments, the Bank of China, Banque Saudi Fransi, the Industrial and Commercial Bank of China, the Export-Import Bank of Korea, the Saudi Investment Bank, the Saudi National Bank and Standard Chartered Bank.

ACWA Power chief investment officer Thomas Brostrom stated: “The successful achievement of financial closure of the Rumah 1 and Nairyah 1 IPP projects underscores the investor confidence in ACWA Power’s strategic vision and our proven track record in delivering sustainable power solutions.

“Securing financing from such a diverse group of lenders demonstrates the bankability of these projects and their alignment with global sustainability objectives. We are particularly pleased with the inclusion of export credit financing, which further validates the international significance of these projects. This financial achievement reinforces our commitment to providing reliable and cost-effective power while actively pursuing innovative solutions for a cleaner energy future.”

The Rumah 1 IPP Project, situated in Riyadh Province, involves constructing a 1,800MW combined cycle gas turbine (CCGT) power plant, managed by Remal Energy Company, with an investment of $2bn.

The Nairyah 1 IPP Project will see the construction of a 1,800MW CCGT power plant in the Eastern Province, operated by Naseem Energy Company, also with an investment of $2bn.

Ownership of the Remal Energy Company and the Naseem Energy Company is divided between ACWA Power (35%), SEC (35%) and KEPCO (30%).

These projects are pivotal for domestic energy production and international cooperation.

The projects are designed with future adaptability in mind, allowing for the potential integration of carbon capture technology.

The Saudi Power Procurement Company is tasked with project tendering and power purchase and will be the principal buyer for the projects.