RIYADH: Saudi utility giant Acwa and Saudi Energy Co. have signed a 31-year power purchase agreement with the Saudi Power Procurement Co. for the Rabigh 2 Independent Power Producer Expansion project.
In separate Tadawul filings, Acwa and Saudi Energy Co. said the agreement, valued at SR11.5 billion ($3.07 billion), includes the development, financing, construction, ownership, and operation of a large-scale combined-cycle gas turbine power plant with a generation capacity of 2,313.5 MW.
Both Acwa and Saudi Energy hold a 40 percent effective shareholding each in the project.
Rabigh 2 is a greenfield project located in Makkah province, on the western coast of Saudi Arabia, around 130 km north of Jeddah, adjacent to the existing Rabigh IPP.
This development aligns with Saudi Arabia’s Vision 2030 goals to expand power generation capacity while incorporating cleaner technologies, including readiness for carbon capture units. The Kingdom aims to increase the share of renewables to 50 percent in its power mix by 2030 and achieve net zero by 2060.
