A consortium - comprising Korea's Doosan Enerability (formerly Doosan Heavy Industries) and Sepco3, a professional electric power engineering company - has secured a major contract worth 2.2 trillion won ($1.52 billion) for building two combined cycle power plants in Saudi Arabia - Rumah 1 and Nairyah 1 - with a total capacity of 3600 MW.

 

The contract was awarded by the developer consortium of Saudi utility major Acwa Power, Korea Electric Power Corporation (Kepco) and Saudi Electricity Company (SEC).

 

The Rumah 1 and Nairyah 1 facilities, each with a capacity of 1800MW, are key projects launched under Saudi Arabia’s Vision 2030 initiative aimed at responding to the growing demand for electricity, improving the power structure, enhancing the peak-generation capacity of the power grid, and ensuring the safe and stable operation of the power grid. 

 

The Rumah 1 is located about 80km east of capital Riyadh, while the Nairyah 1 plant is located 50km north of Al Nairyah, Eastern Province.

 

On the contract win, Lee Hyun-ho, the Head of Doosan Enerability's Plant EPC division, said: "The contract underscores our construction expertise and competitiveness in the global energy sector, particularly as the Middle East's energy demand continues to grow." 

 

The successful implementation of the project will greatly enhance Saudi Arabia’s power supply capacity, optimize the power structure, and inject strong impetus into the sustainable development of Saudi Arabia’s economy and society, he stated.

 

Last November, the Acwa Power consortium had signed the power purchase agreement with the principal buyer Saudi Power Procurement Company (SPPC).

 

In both these projects, Acwa Power holds a 35% ownership stake with SEC and Kepco as partners.

 

The project scope includes development, financing, construction, ownership and operation of these plants.-TradeArabia News Service