Abu Dhabi – Mubasher Abu Dhabi National Energy Company (TAQA), Japan-based JERA Company, and Al Bawani Capital jointly announced the financial closing of two greenfield power plants in Saudi Arabia.
The projects are Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2), which were disclosed in November 2024, according to a press release.
This milestone was achieved under the supervision of the Saudi Ministry of Energy, in partnership with the Saudi Power Procurement Company (SPPC), following the signing of two 25-year power purchase agreements (PPAs) between TAQA, JERA, and Al Bawani.
Together, the greenfield combined cycle gas turbine (CCGT) power plants will deliver around 3.60 gigawatts (GW) of power generation capacity.
With an investment of around $4 billion (AED 14.70 billion), the projects are being developed on a build, own and operate basis, supporting the Kingdom’s growing energy need.
Financing was secured from a group of leading regional and international lenders through senior debt and equity bridge loans. Senior debt leverage exceeded 80%.
Lending institutions include Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank (SAB), the Saudi National Bank (SNB), Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Bank of China, and First Abu Dhabi Bank (FAB).
The construction phase will be undertaken through special-purpose entities owned by TAQA (49%), JERA (31%), and Al Bawani (20%).
Meanwhile, the operation and maintenance (O&M) will be carried out by specialized firms owned by the consortium under the same shareholding structure.
Engineering, procurement, and construction (EPC) contracts were awarded to Harbin Electric International Company Limited and China Tiesiju Civil Engineering Group Company Limited.
In line with the Saudi Vision 2030, the two plants are designed for future carbon capture integration, supporting the Ministry of Energy's decarburization goals.
These projects also align with the Saudi Green Initiative's objectives to achieve net-zero greenhouse gas (GHG) emissions through a circular carbon economy by 2060.
The consortium appointed Siemens Energy LLC as the original equipment manufacturer for the projects, with whom the O&M companies have entered into long-term service agreements. The projects back the Kingdom’s optimum energy mix ambitions, which aim to meet the growing power demand.
Farid Al Awlaqi, CEO of TAQA’s Generation business, said: “As lead developer of the power plants, we will be bringing our global expertise and experience to the project, in support of the Kingdom of Saudi Arabia’s optimum energy mix ambitions.”
Steven Winn, Chief Global Strategist at JERA, commented: “The projects will strengthen JERA's presence and contribution to the Kingdom in securing a reliable and sustainable energy supply. The projects shall have decarburization provision in line with JERA’s goal of achieving net-zero by 2050.”
On his part, Fakher Al Shawaf, Group CEO of Al Bawani Holding, affirmed: “These strategic projects will deliver reliable, sustainable energy solutions and contribute meaningfully to Saudi Arabia’s long-term growth and prosperity.”
