Saudi Arabian utility developer ACWA Power on Wednesday said the Saudi Power Procurement Company (SPPC), the principal buyer of electrical energy and capacity for power projects in the kingdom, has conditionally awarded its consortium two combined cycle gas turbine (CCGT) plants.

The project awarded to the consortium of ACWA Power and Saudi Electricity Co. has an estimated value of 14.6 billion riyals ($3.89  billion), the Riyadh Tadawul listed utility developer said in a statement.

The projects, which have a combined capacity of 3.6 gigawatts (GW), are Taiba 1 and Qassim 1 independent power producer (IPP) plants of 1.8 GW capacity each.  

The 25-year power purchase agreements (PPA) with SPPC is expected to be signed in November 2023, ACWA said, adding that the financial impact cannot be determined at this stage.

In December 2022, SPPC had announced that it is re-tendering the 3,600 MW Taiba and the 3.6 GW Qassim IPPs into four smaller combined cycle power projects of 1.8 GW capacity each with provision for CCS readiness in alignment with the Saudi Green Initiative, and the kingdom’s Greenhouse Gases (GHGs) net-zero ambition by 2060.

(Reporting by Brinda Darasha; editing by Seban Scaria)