A consortium comprising Abu Dhabi National Energy Company PJSC, JERA Co., Inc, and Al Bawani Capital has signed two 25-year power purchase agreements with the Saudi Power Procurement Company to develop two greenfield combined cycle gas turbine power plants in Saudi Arabia. These projects, named Rumah 2 IPP and Al Nairyah 2 IPP, will each have a power generation capacity of 1.8 GW, bringing the combined total to over 3.6 GW. Both plants will deploy advanced, high-efficiency gas turbine technology and enable carbon capture capabilities.
These projects align with Saudi Arabia’s energy transition goals, which aim for a balanced energy mix of 50 percent renewable energy and 50 percent gas-fired power generation by 2030. They also support the Saudi Green Initiative’s ambition to achieve net-zero greenhouse gas emissions by 2060 or sooner, depending on technological advancements.
The consortium was awarded the contracts following SPPC’s procurement process. TAQA will hold a 49 percent stake in the projects, with JERA owning 31e percent and Al Bawani holding 20 percent. The operation and maintenance of the plants will be managed through special-purpose entities established by the consortium, mirroring the ownership structure.
Farid Al Awlaqi, CEO of TAQA’s Generation business, highlighted the importance of the projects, noting their contribution to TAQA’s goal of reaching 150 GW of capacity by 2030. He also emphasised TAQA’s role as the lead developer and its expanded operational capabilities. Al Awlaqi remarked that these power plants reaffirm TAQA’s position as a leader in low-carbon power and sustainable development while supporting Saudi Arabia’s energy transition goals.
Steven Winn, chief global strategist at JERA, underlined the alignment of the projects with JERA’s commitment to achieving net-zero emissions by 2050. He praised the collaboration between stakeholders, which enabled the deployment of state-of-the-art HL-class gas turbines. Winn reiterated JERA’s dedication to decarbonising thermal power and its support for the Saudi Green Initiative and Vision 2030.
Eng. Fakher AlShawaf, group CEO of Al Bawani Holding, described the partnership as a transformative milestone for the company. He highlighted the role of the projects in advancing Saudi Arabia’s energy diversification objectives, creating economic opportunities, and fostering local expertise. AlShawaf expressed enthusiasm for contributing to a sustainable energy landscape in the Kingdom.
This development follows TAQA and JERA’s earlier achievement of financial close on a cogeneration plant in Jubail, which will supply electricity and steam to a petrochemical complex. Together with the new projects, the consortium demonstrates a strong commitment to advancing Saudi Arabia’s energy goals while promoting sustainability and economic growth.
For more information visit www.jera.co.jp
