Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utility companies in the EMEA region, is part of a consortium that has signed two 25-year power purchase agreements (PPAs) with Saudi Power Procurement Company on a build, own and operate basis.
Along with JERA Co, Japan’s largest power generation company and AlBawani Capital, a subsidiary of AlBawani Holding, TAQA will develop two new greenfield combined cycle gas turbine power projects with a total power generation capacity of over 3.6 GW in Saudi Arabia.
Farid Al Awlaqi, Chief Executive Officer, TAQA’s Generation business, commented: “TAQA has ambitious growth targets of 150GW by 2030, and this announcement marks a major milestone for 2024 with the addition of a further 3.6 GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia. This takes TAQA’s portfolio to five greenfield projects in the Kingdom.
“We are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities.
“The announcement cements TAQA’s position as a low carbon power and water champion and as a trusted and sustainable developer, investor and operator in several key markets. Alongside our partners, JERA and AlBawani, TAQA is pleased to be supporting the Kingdom and SPPC on its energy transition journey with these two pivotal power plants.”
With Saudi aiming to meet power demand through an optimal energy mix for electricity production of 50 per cent from renewable energy and 50 per cent from gas technology by 2030, Saudi Power Procurement Company (SPPC) recently announced the award of contracts for the 1.8 GW Rumah 2 and 1.8 GW Al Nairyah 2 conventional independent power producer projects to the consortium.
The projects will use the highest-efficiency combined cycle gas turbines (CCGT) available and will enable the utilisation of carbon capture technologies.
Special purpose entities to develop these plants will be owned by TAQA (49 per cent), JERA (31 per cent) and AlBawani (20 per cent). Operation and maintenance of the plants to be undertaken by the partners through respective O&M special purpose entities with the same shareholding structure.
Steven Winn, Chief Global Strategist, JERA, added: “In line with JERA’s goal to achieve net zero by 2050, the award of these two high-efficiency independent power projects, featuring state-of-the-art HL class gas turbines, reinforces JERA’s commitment to decarbonising thermal power generation.
“These projects align perfectly with our strategy to provide efficient, sustainable, and technologically advanced energy systems, contributing to the Kingdom’s and our customers’ vision for a sustainable and optimised energy supply.”
Fakher AlShawaf, Group CEO of AlBawani Holding, added: “This project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030. Through this project, we aim to deliver a highly efficient and reliable power solution that will play a crucial role in meeting the Kingdom’s growing demand for energy, while also advancing local expertise and creating new opportunities for economic growth.”
Earlier this year, TAQA together with JERA, reached the financial close of a new industrial steam and electricity cogeneration plant that will produce electricity and steam for a petrochemical complex located in Jubail in the Eastern Province of Saudi Arabia.
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