Saudi Power Procurement Company (SPPC), the principal buyer of electricity in the kingdom, has commenced the qualification process for the third round of conventional IPP projects (CCGT). 

Each project will be developed under a build-own-operate (BOO) model, with the winning consortium holding 100 per cent equity in the special purpose vehicle (SPV) established to develop and operate the Independent Power Project (IPP). Each SPV will enter into a power purchase agreement with Principal Buyer.

These projects contribute to the Saudi Vision 2030 by supporting the sustainable growth of the energy sector over the medium and long term through the Circular Carbon Economy (CCE) approach, according to SPPC.

This approach utilises a range of carbon management solutions and technologies, including displacing liquid fuels with natural gas to reduce emissions intensity, while ensuring readiness to deploy carbon capture technologies in support of the kingdom’s national emissions reduction goals.

In addition, Principal Buyer is responsible for preparing preliminary studies, tendering and awarding IPP projects, and purchasing electricity from energy projects in Saudi Arabia, in accordance with Principal Buyer licence issued by the Saudi Electricity Regulatory Authority (SERA).

Round 1 comprised the Taiba 1, Taiba 2, Qassim 1, and Qassim 2 projects, while Round 2 included the Rumah 1, Rumah 2, Nairyah 1 and Nairyah 2 IPP. 

Each project has a planned generation capacity of 1,800 MW, significantly contributing to the kingdom’s expanding power generation portfolio and supporting growing electricity demand.

Through these successive procurement rounds, SPPC continues to advance Saudi Arabia’s power sector transformation by attracting international and local private investment, strengthening generation capacity.