Abu dhabi: Abu Dhabi National Energy Company (TAQA), in collaboration with JERA Co., Japan's largest power generation firm, and AlBawani Capital (AlBawani), a subsidiary of AlBawani Holding, have confirmed the financial closing of two new power plants in Saudi Arabia. The projects, named Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2), represent a significant step in meeting the Kingdom's increasing energy demands.
According to Emirates News Agency, the financial closure was facilitated under the oversight of Saudi Arabia's Ministry of Energy, in conjunction with the Saudi Power Procurement Company (SPPC). This follows the signing of 25-year Power Purchase Agreements (PPA) involving TAQA, JERA, and AlBawani. With an anticipated 3.6 GW of power generation capacity, the combined cycle gas turbine (CCGT) power plants are set to be developed on a build, own, and operate basis.
The projects entail an investment of approximately US$4 billion (around AED14.7 billion), with financing secured from regional and international lenders through senior debt and equity bridge loans. The high leverage on senior debt, exceeding 80%, underscores the projects' robust fundamentals and the confidence of lenders. Key lending institutions include Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, and others.
TAQA, JERA, and AlBawani will own special purpose entities, with shares distributed as 49%, 31%, and 20% respectively. Operations and maintenance will be managed by companies under the same ownership structure, while Engineering, Procurement, and Construction (EPC) contracts have been awarded to Harbin Electric International Co. Ltd and China Tiesiju Civil Engineering Group Co. Ltd.
Both power plants will incorporate advanced CCGT technology, designed for future carbon capture integration to support Saudi Arabia's decarbonisation objectives under Vision 2030. The projects also align with the Saudi Green Initiative's target to achieve net-zero greenhouse gas emissions by 2060. Siemens Energy LLC has been chosen as the Original Equipment Manufacturer for these developments.
Farid Al Awlaqi, CEO of TAQA's Generation business, expressed pride in reaching this financial milestone, which solidifies their role as a preferred partner for utility projects. Al Awlaqi highlighted the use of high-efficiency CCGT turbines, reinforcing their commitment to growth and decarbonisation.
Steven Winn, Chief Global Strategist at JERA, noted that the financial closure underscores JERA's capabilities in delivering complex projects. The plants will enhance JERA's role in providing a secure and sustainable energy supply, aligning with their net-zero goal by 2050.
Eng. Fakher AlShawaf, Group CEO of AlBawani Holding, emphasized the significance of this milestone in AlBawani's commitment to Saudi Arabia's energy transition. The projects will contribute to the Kingdom's long-term growth and prosperity, in line with Vision 2030.