Saudi Electricity Company (SEC) has announced that it has successfully aligned financing for the Taiba 1 and Qassim 1 Independent Power Plant (IPP) projects, securing SAR11.4 billion ($3.04 billion) of non-recourse funding.
Taiba 1 and Qassim 1 are IPP projects with a total combined cycle gas Tturbine (CCGT) capacity of 3,600 MW, awarded by the Saudi Power Procurement Company (SPPC) to SEC as part of a consortium with Saudi utility major Acwa Power in October 2023.
Furthermore, in November last year, a 25-year power purchase agreement was successfully signed with SPPC for both projects, developed on a build, own, and operate (BOO) basis.
According to SEC, these state-of-the-art facilities represent a leap forward in Saudi Arabia's energy landscape as they mark a pivotal shift towards a cleaner future.
By deploying cutting-edge combined cycle gas turbine technology with the highest efficiency, these plants replace oil-based generation, leading to a substantial reduction in carbon emissions and fostering environmental responsibility.
The financing agreements were undertaken by Sidra One Electricity Company for Taiba 1 and Qudra One Electricity Company for Qassim 1.
In each of these companies, SEC has an effective 40% shareholding.
Speaking at the signing ceremony, CEO Engineer Khaled bin Hamad Algnoon, said: "The Taiba 1 and Qassim 1 plants represent the first of a series of CCGT plants, propelling Saudi Arabia towards achieving a balanced energy mix and maximizing local content contribution envisioned by the Saudi Vision 2030 – a strategic roadmap for a sustainable future."
"For us at SEC, these projects exemplify our dedication to expanding the generation fleet with the latest technologies. Our ultimate goal is to deliver eco-friendly, cutting-edge energy solutions, advancing towards SEC’s goal to achieve net-zero emissions by 2050, perfectly aligning with the Kingdom's ambitious Energy Transition and Energy Mix aspirations," noted Algnoon.
Furthermore, these projects pave the way for the kingdom's green Initiative, aiming for net-zero emissions by 2060, he stated.
The inherent design of these plants allows for the future integration of carbon capture facilities, further solidifying SEC's commitment to environmental stewardship, social responsibility, and governance, he added.-TradeArabia News Service
