Saudi Electricity Company Successfully Aligns Financing for Taiba 1 and Qassim 1 IPPs Projects with 3.6 GW Combined CCGT Capacity

Saudi Electricity Company (SEC) announced that it has successfully aligned financing for the Taiba 1 and Qassim 1 Independent Power Plant (IPP) projects, securing SAR 11.4 Billion (USD 3.04 Billion) of non-recourse financing.

Taiba 1 and Qassim 1 are IPP projects with a total Combined Cycle Gas Turbine (CCGT) capacity of 3,600 MW, awarded by the Saudi Power Procurement Company (SPPC) to SEC as part of a consortium with ACWA Power in October 2023. Furthermore, in November 2023, a 25-year power purchase agreement was successfully signed with SPPC for both projects, developed on a build, own, and operate (BOO) basis.

These state-of-the-art facilities represent a leap forward in Saudi Arabia’s energy landscape as they mark a pivotal shift towards a cleaner future. By deploying cutting-edge combined cycle gas turbine technology with the highest efficiency, these plants replace oil-based generation, leading to a substantial reduction in carbon emissions and fostering environmental responsibility.

The financing agreements were undertaken by the respective project companies: Sidra One Electricity Company for Taiba 1 and Qudra One Electricity Company for Qassim 1. SEC has an effective 40% shareholding in each company.

Following the signing ceremony the CEO of SEC, Eng. Khaled bin Hamad Algnoon, commended his team’s efforts and emphasized SEC’s unwavering commitment to enabling and contributing to the Kingdom’s energy transformation. “These projects exemplify our dedication to expanding our generation fleet with the latest technologies,” stated Eng. Algnoon. “Our ultimate goal is to deliver eco-friendly, cutting-edge energy solutions, advancing towards SEC’s goal to achieve net-zero emissions by 2050, perfectly aligning with the Kingdom’s ambitious Energy Transition and Energy Mix aspirations.”

The Taiba 1 and Qassim 1 plants represent the first of a series of CCGT plants, propelling Saudi Arabia towards achieving a balanced energy mix and maximizing local content contribution envisioned by the Saudi Vision 2030 – a strategic roadmap for a sustainable future. Furthermore, these projects pave the way for the Kingdom’s Green Initiative, aiming for net-zero emissions by 2060. The inherent design of these plants allows for the future integration of carbon capture facilities, further solidifying SEC’s commitment to environmental stewardship, social responsibility, and governance.