ACWA Power, SEC, and KEPCO Close on 3.6GW Saudi Power Projects, Marking $4bn Investment

ACWA Power, the Saudi Electricity Company (SEC), and the Korea Electric Power Corporation (KEPCO) have announced financial close on two major power projects in Saudi Arabia. The Rumah 1 and Nairyah 1 IPP projects, with a total capacity of 3,600MW, represent a combined investment of SR15bn ($4bn) and align with the Kingdom's energy mix plan to ensure a reliable power supply and enhance local content. Financing was sourced from a consortium of local, regional, and international banks. The projects support ACWA Power's target of net zero by 2050 and the country's commitment to net-zero emissions by 2060.

ACWA Power, the Saudi Electricity Company (SEC), and the Korea Electric Power Corporation (KEPCO) have successfully closed the financial arrangements for the Rumah 1 and Nairyah 1 Independent Power Producer (IPP) projects in Saudi Arabia. The total investment for these projects is approximately SAR 15 billion (USD 4 billion), with a combined capacity of 3,600 MW [1].

The projects, which will be owned by Remal Energy Company and Naseem Energy Company, respectively, will contribute to Saudi Arabia's energy mix strategy by enhancing grid reliability and strengthening local content participation. Both initiatives align with the Kingdom's Vision 2030 goals and support its target of net-zero emissions by 2060 [1].

The Saudi Power Procurement Company (SPPC) will act as the principal buyer for the projects, overseeing tendering and power offtake. Ownership of the project companies is shared between ACWA Power (35%), Saudi Electricity Company (35%), and Korea Electric Power Corporation (30%) [1].

The Rumah 1 and Nairyah 1 projects are designed with future-readiness in mind, capable of integrating carbon capture technologies. This forward-looking feature positions them to meet Saudi Arabia's net-zero emissions target by 2060 and aligns with ACWA Power's commitment to achieve net zero by 2050 [1].

The financial close of these projects follows ACWA Power's strategic expansion in the Kingdom, including the Qurayyah CCGT project, which exemplifies Saudi Arabia's energy transition from oil to cleaner gas and renewables [2]. The Qurayyah project, with a total investment of SAR 13.4 billion ($3.57 billion), is a cornerstone of the Kingdom's plan to generate half its electricity from gas by 2030 [2].

The Qurayyah CCGT project, developed by a joint venture involving ACWA Power, Técnicas Reunidas, and Orascom Construction, leverages GE Vernova's cutting-edge 7H-Class gas turbines to achieve high efficiency. The project's robust financing structure, including a 40-40-20 equity split and debt financing from a consortium of international and regional lenders, ensures long-term viability and mitigates risks for stakeholders [2].

These projects underscore Saudi Arabia's commitment to creating a resilient energy grid, with a focus on strategic positioning in the gas-to-renewables pivot. The financial metrics of the Qurayyah project, including a 50-year Power Purchase Agreement (PPA), ensure stable cash flows and open avenues for future revenue streams through carbon credits or government incentives [2].

In conclusion, the financial close of the Rumah 1 and Nairyah 1 projects, along with the strategic expansion in Saudi Arabia, demonstrates ACWA Power's pivotal role in the Kingdom's energy diversification. These projects align with Saudi Arabia's Vision 2030 goals and its commitment to a sustainable energy future.

References:
[1] https://solarquarter.com/2025/08/25/acwa-power-sec-and-kepco-achieve-financial-close-on-sar-15-billion-rumah-1-and-nairyah-1-ipp-projects-in-saudi-arabia/
[2] https://www.ainvest.com/news/acwa-power-strategic-gas-expansion-saudi-arabia-blueprint-middle-east-energy-transition-2508/