ACWA Power, SEC sign SAR 13.4B PPA for Qurayyah station project

Saudi Electricity Co. and ACWA Power Co. signed on Feb. 19. a power purchase agreement (PPA), with Saudi Power Procurement Co. (SPPC) – the primary buyer – to purchase power for Qurayyah IPP Power Project expansion project using a combined cycle system.

In separate statements on Tadawul, the two parties stated that the project, located in Saudi Arabia's Eastern Province, has a production capacity of 3,010.3 megawatts and is prepared for the construction of a carbon capture unit.

The contract is valued at SAR 13.4 billion, with each company holding approximately a 40% stake in the project. The contract duration is 25 years, starting from the anticipated commercial operation date of the entire plant.

The contract covered the development, financing, construction, ownership, and operation of a gas-fired power plant utilizing a combined cycle system, as well as the development, financing, construction, and then transferring ownership of a 380-kilovolt transformer station.

Both parties stated that the financial impact will be determined upon the completion of the financial closing, expected in the second quarter of 2028. They also noted the presence of related parties to the agreement, represented by the two companies.