• The SAR 11.5 billion contract encompasses developing a major gas-fired combined cycle power plant in the Makkah Region.
  • The project enhances electricity supply reliability and sustainability across the Kingdom with a total capacity of 2,313.5 MW.

Riyadh, Saudi Arabia: Acwa, the world’s largest private water desalination company, a leader in the energy transition, and first mover into green hydrogen at scale, announced the signing of a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant Expansion Project.

Signed on April 16, 2026, with a contract value of SAR 11.5 billion, the project encompasses the development of a gas-fired combined cycle power plant located in the Makkah Region of the Kingdom of Saudi Arabia, with a total capacity of 2,313.5 MW and readiness for the future installation of a carbon capture unit.

Omar Al Hassan, Acwa’s Country General Manager - KSA, stated: “The signing of this Power Purchase Agreement marks an important milestone for Acwa and reinforces our commitment to supporting the continued development of the Kingdom’s electricity infrastructure. The Rabigh 2 IPP Expansion Project will play a meaningful role in enhancing generation capacity and strengthening supply reliability, while contributing to Saudi Arabia’s broader energy transition objectives.”

Also commenting on the agreement, Khaled Al Medbel, Acwa’s VP Regional Business Development - KSA and Middle East, said: “This agreement reflects the continued trust and partnership between Acwa and the Saudi Power Procurement Company.  It also underscores our strong confidence in the Kingdom’s energy market and our enduring commitment to delivering strategic, large-scale power generation solutions that support Saudi Arabia’s competitiveness and long-term development ambitions.”

Acwa will hold a 40% equity stake in the project, which is designed to enhance the reliability and sustainability of electricity supply in the Kingdom, in line with the objectives of Saudi Vision 2030 and ongoing efforts to develop and modernize the energy sector. The project is considered one of the largest power generation projects in the Kingdom and includes the development, financing, construction, ownership, and operation of a gas-fired combined cycle power plant. The agreement also includes the development, financing, and expansion of a 380 kV substation to support grid integration and network stability.

About Acwa

Acwa (TADAWUL: 2082) is a Saudi-listed company and the world’s largest private water desalination company, the first mover into green hydrogen, and a leader in the global energy transition. Registered and established in 2004 in Riyadh, Saudi Arabia, Acwa employs over 4,000 people and is currently present in 15 countries in the Middle East, Africa, Central Asia, and Southeast Asia. Acwa’s portfolio comprises 110 projects in either operation, advanced development, or under construction, with assets under management (AUM) of SAR 455 billion (USD 121 billion) and the capacity to generate 96 GW of power (of which 52.3 GW is renewables) and manage 9.8 million m³/day of desalinated water. The energy and water capacity generated by Acwa’s assets is delivered on a bulk basis to address the needs of state utilities and industries on long-term, off-taker contracts under utility services outsourcing and public-private partnership models.

For more information, please visit www.acwapower.com

Acwa Media Contacts:  
Halah Mohsen
Director Media Affairs & External Comms
hmohsen@acwapower.com
media.inquiries@acwapower.com