Acwa has signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant Expansion Project.
The project encompasses the development of a gas-fired combined-cycle power plant in the Makkah Region of the Kingdom of Saudi Arabia, with a total capacity of 2,313.5 MW and the capability for future installation of a carbon capture unit.
Omar Al Hassan, Acwa’s Country General Manager – KSA, stated that, “The signing of this Power Purchase Agreement marks an important milestone for Acwa and reinforces our commitment to supporting the continued development of the Kingdom’s electricity infrastructure. The Rabigh 2 IPP Expansion Project will play a meaningful role in enhancing generation capacity and strengthening supply reliability, while contributing to Saudi Arabia’s broader energy transition objectives.”
Also commenting on the agreement, Khaled Al Medbel, Acwa’s VP Regional Business Development – KSA and Middle East, noted that, “This agreement reflects the continued trust and partnership between Acwa and the Saudi Power Procurement Company. It also underscores our strong confidence in the Kingdom’s energy market and our enduring commitment to delivering strategic, large-scale power generation solutions that support Saudi Arabia’s competitiveness and long-term development ambitions.”
Acwa will hold a 40 percent equity stake in the project, which is designed to enhance the reliability and sustainability of electricity supply in the Kingdom, in line with the objectives of Saudi Vision 2030 and ongoing efforts to develop and modernize the energy sector.
The project is considered one of the largest power generation projects in the Kingdom. It includes the development, financing, construction, ownership, and operation of a gas-fired combined cycle power plant. The agreement also includes the development, financing, and expansion of a 380 kV substation to support grid integration and network stability.
