Friday February 23rd, 2024
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ACWA Power Signs USD 3.9 Billion Energy Purchasing Deal With SPPC

Each of the two power plants this deal covers boast a production capacity of 1,800 megawatts.

John Bichara

Saudi developer ACWA Power has signed a SR 14.6 billion (or USD 3.9 billion) energy purchasing deal with Saudi Power Procurement Co. (SPPC) in order to help activate two gas turbine plants in Taiba and Qassim. Each of these power plants boast a production capacity of 1,800 megawatts.

ACWA Power has been actively expanding its output facilities, with a recent 30-year water purchase agreement with the Dubai Electricity and Water Authority (DEWA) and its role as the preferred bidder for a seawater reverse osmosis plant project in Hassyan. The completion of the seawater reverse osmosis plant's initial phase is projected to increase DEWA's water desalination capacity to 670 million imperial gallons per day by 2027.

In August, ACWA Power secured a 30-year agreement with a $914 million investment for the first phase of the Hassyan project. Simultaneously, SPPC announced two major solar photovoltaic projects. The Tabarjal solar PV independent power plant, with a capacity of 400 MW, involves a consortium with leading energy firms, including China's Jinko Power, Sun-Glare, and New York-based Sunlight Energy Group.

SPPC also finalized an agreement for the Al-Henakiyah solar PV project, generating 1,100 MW and supplying power to approximately 190,000 residential units annually, with a 25-year agreement duration.