Saudi Arabia moves ahead with plans for two 3.5GW gas-fired IPPs

27 Jan 2021
Saudi Arabia moves ahead with plans for two 3.5GW gas-fired IPPs

Saudi Electricity Company (SEC) is moving ahead with plans for two large gas-fired independent power producer (IPP) projects, which will be located in Taibah and Al-Qassim. Both are expected to have a capacity of 3.5GW.

Saudi Electricity Company (SEC) is moving ahead with plans for two large gas-fired independent power producer (IPP) projects, which will be located in Taibah and Al-Qassim.

The projects are both scheduled to have a capacity of 3.5GW.

According to sources in Saudi Arabia’s power sector, consultancy firms recently submitted bids for the financial advisory role on the planned IPP projects.

SEC first planned to develop a large project in Taiba in 2015, initially as a 3,780MW integrated solar combined cycle (ISCC) project. The project had been tendered as an engineering, procurement and construction (EPC) contract, with a separate original equipment manufacturer (OEM) contractor to be appointed.

However, the tender was cancelled as the kingdom switched strategy back towards the independent power producer (IPP) model.

The last contract that SEC awarded for a major gas-fired IPP was for the 1.5GW Fadhili IPP in 2016. The project was jointly tendered by SEC and state oil company Saudi Aramco, with SEC the offtaker for electricity and Aramco the offtaker for steam and water produced by the cogeneration project.

Energy & Utilities - Middle East and Africa Market, Outlook Report 2023.

This must-have report for industry players offers a thorough understanding of the latest developments, challenges, and opportunities in the region, supported by data, analysis, and expert insights. 

E&U Podcast

Subscribe to our Market Talk podcast for the latest on the key issues and trends in the energy and utilities sector

List your business

Create a business listing on the Energy & Utilities markeplace

Sign up for the FREE Energy newsletter

The latest news and analysis sent to your inbox.

Drop Us A Message
I have read, understood and consent to your Privacy Policy