The Clap
The alliance of ACWA Power and Saudi Electricity won the development of two independent production projects using combined cycle gas turbine technology.
These projects are “Taiba 1” and “Qassim 1” with a total production capacity of 3.6 gigawatts, estimated at SAR 14.6 billion.
What
The alliance received notice from the government-owned Saudi Power Procurement Company to undertake these projects. The two companies forming the alliance aim to sign agreements for a duration of 25 years in the coming month.
So What
The development of these projects is part of traditional power stations within the “Energy Mix Plan” overseen by the Ministry of Energy. The plan aims to meet the needs of the electrical grid, ensure energy supplies, localize the gas turbine industry, and utilize carbon capture technologies. It also aligns with the goals of the “Saudi Green Initiative” to achieve net-zero greenhouse gas emissions by 2060 through the implementation of carbon circular economy techniques.
On another note, Saudi Electricity announced the approval of the “Saudi Power Procurement Company,” as the primary energy buyer, to begin the expansion of the power generation station in Rabigh by adding combined cycle units with a capacity of 1.2 gigawatts.
Now What
Now, ACWA Power seeks to sign financing agreements for a wind energy project in Azerbaijan with a production capacity of 240 megawatts, with a total expected investment cost of USD 347 million.
The project company, ACWA Power Azerbaijan for Renewable Energy is expected to sign financing agreements valued at USD 246 million dollars for a duration of 20 years with funding entities represented by the European Bank for Reconstruction and Development (EBRD) and the OPEC International Development Fund.
It is worth noting that the Public Investment Fund (PIF) owns nearly 44% of ACWA Power and around 74% of Saudi Electricity.
