Prime Highlights
- Abu Dhabi’s Taqa and its partners have secured financing for two major power plants in Saudi Arabia, boosting the country’s energy capacity.
- The projects are supported by international partners, including Japan’s JERA Co. and AlBawani Capital, ensuring expert management and smooth execution.
Key Facts
- The two combined cycle gas turbine (CCGT) plants will generate around 6 GWof electricity on a build-own-operate basis.
- Construction and operations are managed by companies owned by Taqa (49%), JERA (31%), and AlBawani (20%), with strong backing from leading regional and international banks.
Key Background:
Taqa, the leading utility company based in Abu Dhabi, and its strategic partners have managed to finance two greenfield power plants in Saudi Arabia, which is a milestone in the development of energy in the region.
The two power plants, Rihab ElAwal (Rumah 2) and Nawras (Al Nairyah 2), are being developed with support from JERA of Japan and AlBawani Capital. They come after 25-year agreements to provide electricity, supervised by the Saudi Ministry of Energy and the Saudi Power Procurement Company.
Together, the new combined cycle gas turbine (CCGT) plants will deliver approximately 3.6 gigawatts of power generation capacity, helping Saudi Arabia advance its goal of a balanced and sustainable energy mix. The consortium is long-term in its commitment to the projects, which are outlined on a build-own-operate basis.
These projects were financed through loans and equity, most of which are senior debt, which reflects that lenders are very confident in these projects. The funding was contributed by major banks in the region and other parts of the world, including Al Rajhi Bank, Riyadh Bank, Saudi National Bank, Abu Dhabi Commercial Bank, Bank of China, among others.
The power plants are being built by companies owned by Taqa (49%), JERA (31%), and AlBawani (20%), and these same companies will also take care of running and maintaining the plants.
Farid Al Awlaqi, CEO of Taqa’s Generation business, highlighted the importance of the project: “As the lead developer, we will bring our experience to help Saudi Arabia achieve a strong and balanced energy mix. The first phase of construction has just finished, and work is moving forward.”
These two power plants will provide Saudi Arabia with more reliable electricity, supported by international cooperation, solid funding, and skilled management.
