Abu Dhabi National Energy Company (TAQA), JERA Co., Inc., and AlBawani Capital have signed two 25-year Power Purchase Agreements (PPAs) with the Saudi Power Procurement Company (SPPC). The agreements involve developing two combined cycle gas turbine (CCGT) power projects, Rumah 2 and Al Nairyah 2, with a total capacity of 3.6 gigawatts (GW).
The projects will use high-efficiency CCGT turbines and include future compatibility for carbon capture technologies. They align with Saudi Arabia’s energy diversification strategy, which aims for an optimal energy mix of 50% renewable energy and 50% natural gas by 2030. While these plants are gas-based, they play a role in supporting renewable energy integration by providing reliable and stable power during times when renewable sources like solar or wind may be intermittent.
The projects also contribute to the Saudi Green Initiative, which seeks net-zero greenhouse gas emissions by 2060 through a circular carbon economy. By incorporating carbon capture readiness, the projects show a focus on reducing the environmental impact of gas-fired power generation while enabling the gradual scaling of renewable energy in the national grid.
TAQA, which has a growing renewable energy portfolio, aims to complement these gas projects with its renewable developments globally. JERA’s involvement reflects its goal to decarbonize thermal power generation as part of its 2050 net-zero strategy. AlBawani’s participation supports local expertise development and enhances infrastructure to prepare for further renewable energy integration.
These projects provide a transitional approach, ensuring energy demand is met while Saudi Arabia expands its renewable energy capacity. They help stabilize the grid and enable further investments in large-scale solar and wind projects under the Kingdom’s renewable energy program.
