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Saudi Arabia Investments Propel Expansion of Qurayyah Power Plant
SR13.4 billion project aims to enhance energy security and efficiency in line with Vision 2030.
Saudi Arabia has announced a significant investment of SR13.4 billion (approximately $3.57 billion) to expand the Qurayyah power plant by 3.01 gigawatts, addressing the increasing demand for electricity and supporting the nation's economic growth.
Saudi Electricity Company (SEC) and ACWA Power have formalized a power purchase agreement with Saudi Power Procurement Company (SPPC), which is the sole licensed electricity buyer in the Kingdom, for this project.
The Qurayyah Independent Power Plant is recognized as the largest combined-cycle gas-fired independent energy station globally.
This expansion aligns with Saudi Arabia's Vision 2030 initiative, aiming to enhance electricity generation efficiency, reduce operational costs, and diversify the energy mix by transitioning from liquid fuels in the power sector.
The project's implementation seeks to enhance both the reliability and sustainability of power generation through the use of advanced combined-cycle gas turbine technology, which is also designed to accommodate future carbon capture technologies, contributing to environmental conservation efforts.
Oversight of the expansion falls under the Ministry of Energy, which has set a goal to increase the electricity capacity and efficiency across the Kingdom.
The consortium managing the expansion consists of ACWA Power, SEC, and Hajji Abdullah Alireza & Co. Ltd., with SEC and ACWA Power both retaining a 40 percent stake in the project.
As one of the largest power generation initiatives in Saudi Arabia, the project includes financing, construction, ownership, and operational responsibilities associated with a new combined-cycle gas power plant, as well as the development of a 380-kilovolt electrical substation, according to information reported by local agencies.
SEC has established itself as the largest producer, transmitter, and distributor of electricity in the Middle East and North Africa, with a customer base exceeding 11 million.
In a related development, ACWA Power, which is recognized as the world’s largest private desalination company, announced on February 19 that it has received confirmation from the Al-Shuaiba 2 Solar PV Independent Power Plant project company regarding the granting of a commercial operation certificate for its projects, with a cumulative capacity of 2,060 megawatts.
ACWA Power holds a net stake of 35.01 percent in this solar initiative, which is now fully operational, with anticipated financial impacts expected to reflect in the second quarter of the current fiscal year.
Saudi Electricity Company (SEC) and ACWA Power have formalized a power purchase agreement with Saudi Power Procurement Company (SPPC), which is the sole licensed electricity buyer in the Kingdom, for this project.
The Qurayyah Independent Power Plant is recognized as the largest combined-cycle gas-fired independent energy station globally.
This expansion aligns with Saudi Arabia's Vision 2030 initiative, aiming to enhance electricity generation efficiency, reduce operational costs, and diversify the energy mix by transitioning from liquid fuels in the power sector.
The project's implementation seeks to enhance both the reliability and sustainability of power generation through the use of advanced combined-cycle gas turbine technology, which is also designed to accommodate future carbon capture technologies, contributing to environmental conservation efforts.
Oversight of the expansion falls under the Ministry of Energy, which has set a goal to increase the electricity capacity and efficiency across the Kingdom.
The consortium managing the expansion consists of ACWA Power, SEC, and Hajji Abdullah Alireza & Co. Ltd., with SEC and ACWA Power both retaining a 40 percent stake in the project.
As one of the largest power generation initiatives in Saudi Arabia, the project includes financing, construction, ownership, and operational responsibilities associated with a new combined-cycle gas power plant, as well as the development of a 380-kilovolt electrical substation, according to information reported by local agencies.
SEC has established itself as the largest producer, transmitter, and distributor of electricity in the Middle East and North Africa, with a customer base exceeding 11 million.
In a related development, ACWA Power, which is recognized as the world’s largest private desalination company, announced on February 19 that it has received confirmation from the Al-Shuaiba 2 Solar PV Independent Power Plant project company regarding the granting of a commercial operation certificate for its projects, with a cumulative capacity of 2,060 megawatts.
ACWA Power holds a net stake of 35.01 percent in this solar initiative, which is now fully operational, with anticipated financial impacts expected to reflect in the second quarter of the current fiscal year.
