Overview of the Consortium Led by Taqa
Abu Dhabi National Energy business (Taqa) has obtained two 25-year power purchase agreements (PPAs) with Saudi Power Procurement Company (SPPC) in collaboration with Jera Co., the biggest power producing business in Japan, and Al Bawani Capital, a division of AlBawani Holding. Based on a build, own, and operate strategy, these agreements will help Saudi Arabia establish two greenfield combined cycle gas turbine (CCGT) power plants with a combined power output capacity of more than 3.6 GW.
Al Nairyah 2 and Rumah 2 are important projects.
The 1.8 GW Rumah 2 and Al Nairyah 2 independent power producer (IPP) projects will be developed under the consortium’s supervision. In line with Saudi Arabia’s energy plan, which aims to attain a balanced energy mix of 50% renewable energy and 50% gas technology by 2030, these projects will make use of the most efficient CCGT turbines and integrate carbon capture technologies.
Support for the Green Initiatives in Saudi Arabia
The Saudi Green Initiative, which aims to create a circular carbon economy and attain net-zero greenhouse gas emissions by 2060, depends heavily on the new power plants. These initiatives mark a major advancement in the kingdom’s sustainable energy infrastructure and the use of cutting-edge technologies to fulfil rising energy demands.
Structure of Ownership and Operations
Special purpose companies jointly held by Taqa (49%), Jera (31%), and Al Bawani (20%) will oversee the two factories. The same sharing structure will apply to operations and maintenance as well, highlighting the consortium’s collaborative nature.
Taqa’s Growth Vision
The CEO of Taqa’s generation division, Farid Al Awlaqi, emphasised the company’s ambitious target of reaching 150 GW capacity by 2030. Through these projects, Taqa’s portfolio in Saudi Arabia is strengthened by the addition of 3.6 GW. Taqa will be in charge of operations and maintenance as the primary developer, showcasing its credentials as a reliable and sustainable energy developer.
Jera’s Decarbonisation Commitment
Jera’s Chief Global Strategist, Steven Winn, stressed how these initiatives fit in with the company’s goal of becoming net zero by 2050. The projects, which use cutting-edge HL-class gas turbines, demonstrate Jera’s dedication to offering effective and decarbonised thermal power production solutions.
The Contribution of Al Bawani to Saudi Arabia’s Energy Diversification
AlBawani Holding Group CEO Fakher AlShawaf emphasised the significance of the collaboration in furthering Saudi Arabia’s Vision 2030 energy diversification objectives. AlBawani wants to address the kingdom’s energy needs while promoting regional knowledge and economic development by bringing cutting-edge technology and sustainable practices.
Prior Achievements of the Consortium
Taqa and Jera completed the financial closing of a cogeneration plant in Jubail, Eastern Province, Saudi Arabia, earlier in 2024. The consortium’s dedication to assisting Saudi Arabia’s industrial and energy infrastructure will be further solidified by this facility, which will generate steam and power for a petrochemical complex.
