Acwa Power, Saudi Electricity Company (SEC) and Korea Electric Power Corporation (Kepco) have achieved financial close for the 3,600MW Rumah 1 and Nairyah 1 independent power producer (IPP) projects in Saudi Arabia. The two projects represent a total investment of about SR15bn ($4bn).

Saudi Power Procurement Company is the principal buyer for the projects, responsible for tendering and power offtake. Ownership of the project companies, Remal Energy Company for Rumah 1 and Naseem Energy Company for Nairyah 1, is split between Acwa Power (35%), SEC (35%) and Kepco (30%).

The projects form part of the Saudi Energy Ministry’s plan to maximise local power supply in line with Vision 2030.

They also support the kingdom’s net-zero 2060 target and allow for future integration of carbon capture facilities.

Financing was secured from a syndicate of local, regional and international lenders, including Export Import Bank of Korea, Saudi National Bank, Saudi Investment Bank, Banque Saudi Fransi, Standard Chartered Bank, Bank of China, Agricultural Bank of China, Industrial & Commercial Bank of China and Arab Petroleum Investments Corporation.

MEED reported in Novemeber that the Acwa, SEC and Kepco consortium had won the contracts to develop the two combined-cycle gas turbine IPPs. Tokyo-headquartered Mitsubishi Power was to supply the gas turbines to power the plants.

The team offered a levelised electricity cost of 4.5859 $cents a kilowatt-hour ($c/kWh) for Rumah 1 and 4.6114 $c/kWh for Nairiyah 1.

Rumah 1 involves the construction of a combined-cycle gas turbine plant with a capacity of 1,800MW in Riyadh Province. The project will be developed by Remal Energy Company with an investment of SR7.5bn ($2bn).

Nairyah 1, also with a capacity of 1,800MW, will be built in the Eastern Province and developed by Naseem Energy Company. The investment value is about SR7.5bn ($2bn)