Saudi utility major Acwa Power has announced that its consortium with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (Kepco) has secured SAR12.8 billion ($3.4 billion) in senior debt financing for the 3,600MW Rumah 1 and Nairyah 1 independent power producer (IPP) projects in Saudi Arabia.

 

The financing for these projects was secured from institutions including Export Import Bank of Korea (Kexim), Saudi National Bank, Saudi Investment Bank, Banque Saudi Fransi, Standard Chartered Bank, Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and Arab Petroleum Investments Corporation.

 

Both projects - each with a capacity of 1,800 MW - will support Saudi Arabia’s energy diversification strategy under Vision 2030 and contribute to national net-zero emissions goals. 

 

The Rumah 1 plant will be built in Riyadh Province and operated by Remal Energy Company, while Nairyah 1 will be located in the Eastern Province and managed by Naseem Energy Company.

 

Saudi Power Procurement Company (SPPC) is the principal buyer for both projects. Ownership of the project companies is split among Acwa Power (35%), SEC (35%), and Kepco (30%).

 

These projects are designed to allow future integration of carbon capture technologies, aligning with Saudi Arabia’s target of net-zero emissions by 2060 and ACWA Power’s goal of net-zero by 2050.

 

The inherent design of these plants allows for the future integration of carbon capture facilities, further solidifying the commitment to flexibility and innovation in the Kingdom’s energy sector, it stated.

 

On the funding, Thomas Brostrom, Chief Investment & Development Officer at Acwa Power, said: "The successful dry financial closure of the Rumah 1 and Nairyah 1 IPP projects underscores the investor confidence in Acwa Power's strategic vision and our proven track record in delivering sustainable power solutions. Securing financing from such a diverse group of lenders demonstrates the bankability of these projects and their alignment with global sustainability objectives."

 

"We are particularly pleased with the inclusion of export credit financing, which further validates the international significance of these projects. This financial achievement reinforces our commitment to providing reliable and cost-effective power while actively pursuing innovative solutions for a cleaner energy future," he stated.

 

Manish Manchandya, Executive Vice President, Strategic Planning & Chief Investment Officer at Saudi Electricity Company (SEC) and Acting CEO of Energy Infrastructure Consortium Company (EICC), said: "The successful dry financial closure of the Rumah 1 and Nairyah 1 IPP projects is a testament to the strength of our partnerships and the kingdom’s credibility in attracting strategic investments in the energy sector."

 

"These projects represent more than just additional capacity; they embody SEC’s strategic vision to deliver reliable, efficient, and environmentally responsible power solutions to support national development. By leveraging advanced technologies and fostering international collaboration, we are contributing to Saudi Arabia’s energy transition goals while enhancing the resilience and sustainability of our power system," he noted. 

 

"We are proud to be at the forefront of delivering on Vision 2030’s priorities and creating long-term value for our stakeholders," stated Manchandya.

 

The Rumah 1 IPP Project includes the construction of a combined cycle gas turbine (CCGT) power plant with a capacity of 1,800MW in Saudi’s Riyadh Province. The plant will be operated by Remal Energy Company as the project company, with a combined financing of SAR6.4 billion ($1.7 billion).

 

In addition, Nairyah 1 IPP Project includes the construction of Naryah 1 CCGT Power Plant with a capacity of 1,800MW in the Eastern Province of Saudi Arabia. 

 

Naseem Energy Company will serve as the project company, with combined financing of SAR6.4 billion ($1.7 billion).-TradeArabia News Service