ACWA Power Secures SAR 11.5 Billion PPA for Rabigh 2 Expansion

ACWA Power's Major Expansion Initiative

ACWA Power has announced the signing of a significant power purchase agreement (PPA) valued at SAR 11.5 billion with the Saudi Power Procurement Company (SPPC). This agreement is aimed at expanding the Rabigh 2 independent power plant, which is located in Makkah and will include advanced features such as carbon capture integration.

Details of the Power Purchase Agreement

According to ACWA Power, the newly signed contract has a duration of 31 years commencing from the expected date of commercial operation for the full plant. The expansion project will enhance the generation capacity of the Rabigh 2 facility to a total of 2,313.5 megawatts. Notably, ACWA Power holds a 40% stake in this comprehensive initiative.

The Rabigh 2 project is designed as a combined-cycle gas-fired power plant that not only aims to meet the increasing energy demands but also incorporates advanced technology to facilitate carbon capture—a strategic move aligned with global sustainability goals.

Project Scope and Financial Considerations

The scope of this project encompasses not only the development, financing, construction, and ownership of the power plant but also the construction and expansion of a 380-kilovolt substation. The financial implications of the project will become public knowledge once the project reaches financial close, according to the company’s announcement.

SPPC, being classified as a related party in this agreement, plays a critical role in the procurement and supply chain structure.

With this expansion, ACWA Power continues to enhance its portfolio to support Saudi Arabia’s vision for sustainable energy and infrastructure development.