Riyadh, October 24, 2023, The Saudi Power Procurement Company (SPPC) has disclosed the victorious bidders for the Taiba-1, Taiba-2, Qassim-1, and Qassim-2 Conventional Independent Power Producer (IPP) projects. These projects are integral to the energy mix plan, overseen by the Ministry of Energy, designed to meet future electricity demand, ensure reliability, secure the energy supply, promote local gas turbine manufacturing, and facilitate carbon capture technologies. This initiative aligns with the Saudi Green Initiative's goal of achieving net-zero greenhouse gas emissions by 2060 through advanced technologies and support for circular carbon economy strategies.
The Request for Proposals (RFP) for these Conventional IPP projects was launched on January 20, 2023. By July 30, 2023, five bids were received for each of the Taiba-2 and Qassim-2 projects. On August 15, 2023, five bids were received for each of the Taiba-1 and Qassim-1 projects. All proposals were meticulously evaluated to ensure alignment with the RFP's technical and commercial requirements.
Work is currently underway to finalize the award requirements based on the tendering documents for the winning consortiums with the most competitive prices for the Taiba and Qassim Conventional IPP projects. Here are the project winners:
- Taiba 1 (1.8 GW): Saudi Electricity Company + International Company for Water and Power Projects (ACWA Power)
- Taiba 2 (1.8 GW): Al Jomiah Energy and Water + EDF + Buhur for investment
- Qassim 1 (1.8 GW): Saudi Electricity Company + International Company for Water and Power Projects (ACWA Power)
- Qassim 2 (1.8 GW): Al-Jomiah Energy and Water + EDF + Buhur for investment
These projects will attract investments totaling approximately SR29.2 billion (USD 7.8 billion). Each project will be developed on a build, own, and operate (BOO) basis by the winning consortiums, with 100% ownership by the successful bidder. Additionally, each project company will enter into a 25-year power purchase agreement with SPPC.
These projects will feature state-of-the-art Class H/J Gas Turbines, renowned for their high efficiency in combined cycle operation, marking a first in the Kingdom of Saudi Arabia. This technology will facilitate carbon capture efforts. The projects are set to supply power to approximately three million residential units each year, in line with local content requirements and contributing to Saudi Arabia's economy.
