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Korean Firm Wins Billion-Dollar Independent Power Plant Contracts in KSA

Doosan Enerbility, South Korea, announced the signing of a major contract for the construction of the Rumah 1 and Al-Nairyah 1 gas-fired combined cycle power plants in Saudi Arabia. The agreement, valued at over USD 1.54 billion, was finalized with a consortium comprising ACWA Power, Saudi Electricity Company (SEC), and Korea Electric Power Corporation (KEPCO), the project developer. Under the EPC (Engineering, Procurement, and Construction) model, Doosan Enerability, in collaboration with SEPCO-3, will oversee the project from design to commissioning, ensuring efficient and timely completion by 2028.

Simultaneously, Siemens Energy has secured a USD 1.6 billion contract from EPC contractor Harbin Electric International for the supply of key technologies for the Rumah 2 and Nairyah 2 power plants. The contract includes advanced gas turbines, steam turbines, generators, and auxiliary equipment, with production taking place at Siemens Energy’s Dammam Hub. These plants will be integrated into the grid in simple cycle mode by 2027 and transition to full combined-cycle operation the following year, ensuring a reliable power supply for the Kingdom.

The Rumah and Nairyah Independent Power Plants (IPPs) represent a crucial step in Saudi Arabia’s efforts to enhance its power generation capacity. Each plant will have a capacity of 1,800 MW and will contribute to the country’s goal of achieving a more efficient and sustainable energy sector. The projects, located approximately 150 km north of Riyadh and 200 km south of the Kuwait border, will utilize Siemens’ advanced combined cycle gas turbine (CCGT) technology. The initiative aligns with the Saudi Green Initiative and supports the Kingdom’s commitment to reducing greenhouse gas emissions, with the long-term goal of achieving net-zero emissions by 2060. Additionally, the project incorporates provisions for Carbon Capture and Sequestration (CCS) readiness, further strengthening Saudi Arabia’s commitment to sustainability and the circular carbon economy approach.

These power plants will play a pivotal role in the Saudi energy sector’s transformation, as outlined in Vision 2030. The initiative aims to optimize power generation efficiency, reduce costs through energy diversification, and transition toward an optimal energy mix that balances renewable energy with gas. By minimizing the use of liquid fuel in electricity production, the project aligns with Saudi Arabia’s objective of achieving a 50% balance between renewable and gas-powered electricity generation. The long-term power purchase agreements with the Saudi Power Procurement Company (SPPC) will ensure a stable electricity supply for the next 25 years. With cutting-edge technology and a strong focus on sustainability, the Rumah and Nairyah IPPs mark a significant milestone in Saudi Arabia’s journey toward a more resilient and environmentally responsible energy sector.

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