ACWA and Saudi Energy (formerly Saudi Electricity Company) have signed a 31-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company – Principal Buyer (SPPC) for the 2,313.5- megawatt (MW) Rabigh 2 IPP Expansion Project, located in Makkah Province, according to separate stock exchange filings by both companies.

The carbon-capture ready gas-fired Combined Cycle Gas Turbine (CCGT) Power Plant will be implemented under a Build-Own-Operate (BOO) contract.

The contract value is 11.5 billion Saudi riyals ($3.1 billion).

The scope also includes financing and building an extension to a 380kV electrical substation, their statement said.

ACWA and Saudi Energy each own a 40 percent stake in the project.

In January 2026, Saudi Energy had signed a $1.4 billon Energy Conversion Agreement (ECA) with SPCC for the 1,179 MW Rabigh 1 expansion.

In October 2025, the company signed 21-year ECAs worth SAR 12.83 billion ($3.5 billion) with SPPC for two large scale CCGT power plants with a combined production capacity of 3,356 MW, namely, PP13 with production capacity of 1,678 MW and PP14 with production capacity of 1,678 MW in Riyadh city. The contract value was SAR 12.83 billion.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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