emirates7 - Abu Dhabi National Energy Company (TAQA), in partnership with Japan’s largest power generation company, JERA Co., Inc., and Al Bawani Capital, a subsidiary of AlBawani Holding, announced the signing of two 25-year power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC). These agreements, established on a build, own, and operate basis, aim to develop two new greenfield combined cycle gas turbine (CCGT) power plants in Saudi Arabia, with a combined generation capacity exceeding 3.6 GW.
The agreements follow SPPC's decision to award the contracts for the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 independent power producer (IPP) projects to the TAQA, JERA, and AlBawani consortium.
Equipped with the most efficient CCGT turbines available, the Rumah 2 and Al Nairyah 2 projects will integrate carbon capture technology, aligning with Saudi Arabia’s energy transition goals. These initiatives support the Kingdom’s objective of achieving a balanced energy mix for electricity production—50% from renewable sources and 50% from gas-based technologies—by 2030. The projects also contribute to the Saudi Green Initiative, which targets net-zero greenhouse gas emissions through a circular carbon economy by 2060 or earlier, contingent on technological advancements.
The two plants will be developed under separate special-purpose entities, with TAQA holding a 49% stake, JERA owning 31%, and AlBawani holding 20%. The operation and maintenance (O&M) of the facilities will be managed by respective O&M entities with the same ownership structure.
Farid Al Awlaqi, CEO of TAQA’s Generation business, described the projects as a significant milestone in TAQA’s goal of reaching 150 GW of generation capacity by 2030. He noted that these plants bring TAQA’s portfolio of greenfield projects in Saudi Arabia to five. Al Awlaqi highlighted TAQA’s leadership role in developing, operating, and maintaining the plants, reinforcing its position as a sustainable and low-carbon energy champion. He expressed pride in partnering with JERA and AlBawani to support Saudi Arabia’s energy transition objectives.
Steven Winn, Chief Global Strategist at JERA, emphasized the company’s commitment to achieving net zero by 2050. He pointed out that the high-efficiency IPPs, featuring cutting-edge HL-class gas turbines, underscore JERA’s focus on decarbonizing thermal power generation. He credited the achievement of this milestone to strong collaboration among stakeholders, including SPPC, TAQA, AlBawani, and their contractors.
Fakher AlShawaf, Group CEO of AlBawani Holding, called the partnership with TAQA and JERA a transformative step for AlBawani. He reiterated the company’s dedication to advancing Saudi Arabia’s energy diversification goals and Vision 2030. AlShawaf highlighted the importance of the project in meeting the Kingdom’s growing energy demands while fostering local expertise and contributing to economic development. He expressed optimism about collaborating with stakeholders to deliver a highly efficient and reliable energy solution, bringing enduring value to Saudi Arabia’s energy sector.
The agreements follow SPPC's decision to award the contracts for the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 independent power producer (IPP) projects to the TAQA, JERA, and AlBawani consortium.
Equipped with the most efficient CCGT turbines available, the Rumah 2 and Al Nairyah 2 projects will integrate carbon capture technology, aligning with Saudi Arabia’s energy transition goals. These initiatives support the Kingdom’s objective of achieving a balanced energy mix for electricity production—50% from renewable sources and 50% from gas-based technologies—by 2030. The projects also contribute to the Saudi Green Initiative, which targets net-zero greenhouse gas emissions through a circular carbon economy by 2060 or earlier, contingent on technological advancements.
The two plants will be developed under separate special-purpose entities, with TAQA holding a 49% stake, JERA owning 31%, and AlBawani holding 20%. The operation and maintenance (O&M) of the facilities will be managed by respective O&M entities with the same ownership structure.
Farid Al Awlaqi, CEO of TAQA’s Generation business, described the projects as a significant milestone in TAQA’s goal of reaching 150 GW of generation capacity by 2030. He noted that these plants bring TAQA’s portfolio of greenfield projects in Saudi Arabia to five. Al Awlaqi highlighted TAQA’s leadership role in developing, operating, and maintaining the plants, reinforcing its position as a sustainable and low-carbon energy champion. He expressed pride in partnering with JERA and AlBawani to support Saudi Arabia’s energy transition objectives.
Steven Winn, Chief Global Strategist at JERA, emphasized the company’s commitment to achieving net zero by 2050. He pointed out that the high-efficiency IPPs, featuring cutting-edge HL-class gas turbines, underscore JERA’s focus on decarbonizing thermal power generation. He credited the achievement of this milestone to strong collaboration among stakeholders, including SPPC, TAQA, AlBawani, and their contractors.
Fakher AlShawaf, Group CEO of AlBawani Holding, called the partnership with TAQA and JERA a transformative step for AlBawani. He reiterated the company’s dedication to advancing Saudi Arabia’s energy diversification goals and Vision 2030. AlShawaf highlighted the importance of the project in meeting the Kingdom’s growing energy demands while fostering local expertise and contributing to economic development. He expressed optimism about collaborating with stakeholders to deliver a highly efficient and reliable energy solution, bringing enduring value to Saudi Arabia’s energy sector.