Abu Dhabi National Energy Company (TAQA), Japanese power generation company JERA, and Albawani Capital have reached financial close on two greenfield power plants in Saudi Arabia.
The total investment for these projects - Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2) - is estimated at roughly $4bn.
Developed under the supervision of the Saudi Ministry of Energy and in partnership with the Saudi Power Procurement Company, these plants are set to deliver approximately 3.6GW of power generation capacity through combined cycle gas turbine (CCGT) technology.
The consortium has secured 25-year power purchase agreements (PPAs) for the plants, which will be built, owned, and operated by the partnership.
Financing has been arranged through a consortium of regional and international lenders, including Al Rajhi Bank, Riyad Bank, and Saudi Awwal Bank, among others.
Construction responsibilities for the power plants have been assigned to special-purpose entities owned by TAQA (49%), JERA (31%), and Albawani (20%).
Engineering, procurement, and construction contracts have been awarded to Harbin Electric International and China Tiesiju Civil Engineering Group.
Siemens Energy has been selected as the original equipment manufacturer for the projects, and long-term service agreements have been established with the operations and maintenance companies involved.
Albawani Holding Group CEO Fakher Al Shawaf said: “Achieving financial close marks a significant milestone in Albawani’s ongoing commitment to supporting the kingdom’s energy transition, in alignment with the ambitious goals of Vision 2030, and in partnership with TAQA and JERA.”
TAQA generation business CEO Farid Al Awlaqi said: “Notably, the construction of both plants is well underway with the early works phase concluding recently. We are developing the plants to be built for the future utilising the highest efficiency CCGT turbines, which demonstrates our firm commitment to growth and decarbonisation.”
JERA chief global strategist Steven Winn said: “The projects shall have decarbonisation provision in line with JERA’s goal of achieving net-zero by 2050. We congratulate all stakeholders on achieving this major milestone.”
