Acwa has announced the signing of a power purchase agreement (PPA) with the Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant Expansion Project.
Signed on April 16,
2026, with a contract value of SAR 11.5 billion ($3
billion), the project encompasses
the development of a gas-fired combined cycle power plant located in the Makkah
Region of Saudi Arabia, with a total capacity of 2,313.5 MW and readiness for
the future installation of a carbon capture unit.
Acwa will hold a 40 per cent equity stake
in the project, which is designed to enhance the reliability and sustainability
of electricity supply in the Kingdom, in line with the objectives of Saudi
Vision 2030 and ongoing efforts to develop and modernise the energy sector.
The project is
considered one of the largest power generation projects in the Kingdom and
includes the development, financing, construction, ownership, and operation of
a gas-fired combined cycle power plant.
The agreement also
includes the development, financing, and expansion of a 380 kV substation to
support grid integration and network stability.
Omar Al Hassan, Acwa’s
Country General Manager - KSA, stated: “The signing of this Power Purchase
Agreement marks an important milestone for Acwa and reinforces our commitment
to supporting the continued development of the Kingdom’s electricity
infrastructure. The Rabigh 2 IPP Expansion Project will play a meaningful role
in enhancing generation capacity and strengthening supply reliability, while
contributing to Saudi Arabia’s broader energy transition objectives.”
Khaled Al Medbel, Acwa’s VP Regional Business Development - KSA and Middle East, said: “This agreement reflects the continued trust and partnership between Acwa and the Saudi Power Procurement Company. It also underscores our strong confidence in the Kingdom’s energy market and our enduring commitment to delivering strategic, large-scale power generation solutions that support Saudi Arabia’s competitiveness and long-term development ambitions.” -OGN/TradeArabia News Service
