Two Power Plants to Be Built in Saudi Arabia by TAQA Consortium

A consortium led by Abu Dhabi National Energy Company (TAQA) has finalized agreements to construct two new power plants in Saudi Arabia.

The consortium, which includes Japan's JERA and Saudi-based AlBawani, has signed 25-year Power Purchase Agreements (PPAs) with the Saudi Power Procurement Company for the development of the Rumah 2 and Al Nairyah 2 projects.

The two greenfield projects, with a combined capacity of 3.6 GW, aim to address the growing energy demand while supporting Saudi Arabia's broader strategy of achieving a balanced energy mix of 50% renewables and 50% gas by 2030. These state-of-the-art plants will incorporate high-efficiency combined cycle gas turbines and are designed to enable carbon capture technology.

Special purpose entities will be established for the projects, with ownership divided amongst the consortium, with TAQA holding 49%, JERA owning 31%, and AlBawani holding the remaining 20%. TAQA, as the lead developer, will also manage operations and maintenance, reflecting its expanding role in the region's energy landscape.