Taqa, Jera, and AlBawani Sign Agreements for Major Saudi Power Projects

Abu Dhabi National Energy Company (Taqa), Japan’s Jera Co., and Saudi Arabia’s AlBawani Capital have entered into two 25-year power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) to develop two combined cycle gas turbine (CCGT) power plants in Saudi Arabia.

The agreements, announced on Monday, cover the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 independent power producer (IPP) projects. With a total capacity exceeding 3.6 GW, the projects will be built, owned, and operated by a consortium led by Taqa (49%), alongside Jera (31%) and AlBawani (20%).

The plants will feature cutting-edge high-efficiency CCGT turbines and incorporate carbon capture technology, aligning with Saudi Arabia’s energy diversification goals under Vision 2030. The kingdom aims to achieve a balanced energy mix of 50% renewable energy and 50% gas-powered technology for electricity generation by the decade’s end. Additionally, the projects are in line with the Saudi Green Initiative, which seeks net-zero greenhouse gas emissions by 2060 or sooner, depending on technological advancements.

Milestone Projects for the Kingdom and Partners

Farid Al Awlaqi, CEO of Taqa’s generation business, described the projects as a significant milestone for the company, which aims to expand its portfolio to 150 GW by 2030.

“These plants will add 3.6 GW of low-carbon gas-fired capacity to Saudi Arabia, marking the fifth greenfield project in Taqa’s Saudi portfolio. As lead developer, we will oversee operations and maintenance, reinforcing Taqa’s role as a sustainable energy leader in key markets,” said Al Awlaqi.

Steven Winn, Chief Global Strategist at Jera, emphasized the projects’ alignment with Jera’s goal of achieving net-zero emissions by 2050. He highlighted the use of state-of-the-art HL class gas turbines, underscoring the company’s commitment to decarbonizing thermal power generation.

Fakher AlShawaf, Group CEO of AlBawani Holding, called the partnership a “transformative milestone,” reinforcing the group’s dedication to advancing Saudi Arabia’s energy diversification efforts. “These power plants will address the growing energy demand while fostering local expertise and economic growth,” AlShawaf stated.

Broader Energy Strategy

The new projects build on Taqa and Jera’s previous collaboration in Saudi Arabia, including a cogeneration plant in Jubail that provides electricity and steam to a petrochemical complex.

These developments underline the consortium’s commitment to delivering efficient and sustainable energy solutions, contributing to the kingdom’s ambitious Vision 2030 objectives and its transition toward a more sustainable energy future.

The Rumah 2 and Al Nairyah 2 projects will be operated and maintained by special-purpose entities established by the partners, further strengthening their collaborative efforts in driving sustainable development in Saudi Arabia.