On Monday, Saudi Electricity Company “SEC” (5110), “ACWA Power” (2082), and “Korea Electric Power Corporation” (KEPCO) signed a power purchase agreement with “Saudi Power Procurement Company (SPPC).
The agreement involves total investments of approximately SAR 15 billion (USD 4 billion), furthering the Kingdom’s efforts to leverage clean energy sources.
Details
The investments are related to two independent power generation projects, “Rumah 1” and “Nairyah 1,” with a total production capacity of 3.6 gigawatts.
These projects are located in the Riyadh and Eastern provinces, respectively.
So what
The projects will utilize state-of-the-art gas turbine technologies with a combined cycle system, enabling the replacement of oil-based electricity generation with more sustainable options.
SEC and “ACWA Power” hold a 35% stake in each project.
Now what
The projects are expected to help reduce KSA’s carbon emissions and protect the environment.
Additionally, they will contribute to the country’s economic growth by providing job opportunities and strengthening local content contributions.
ACWA Power and SEC expect the financial impact of the projects to be reflected in the second half of 2028.
