Acwa, the world’s largest private water desalination company, a leader in the energy transition, and first mover into green hydrogen at scale, announced the signing of a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant Expansion Project.

Signed on April 16, 2026, with a contract value of SAR 11.5 billion, the project encompasses the development of a gas-fired combined cycle power plant located in the Makkah Region of the Kingdom of Saudi Arabia, with a total capacity of 2,313.5 MW and readiness for the future installation of a carbon capture unit.

Omar Al Hassan, Acwa’s Country General Manager - KSA, stated: “The signing of this Power Purchase Agreement marks an important milestone for Acwa and reinforces our commitment to supporting the continued development of the Kingdom’s electricity infrastructure. The Rabigh 2 IPP Expansion Project will play a meaningful role in enhancing generation capacity and strengthening supply reliability, while contributing to Saudi Arabia’s broader energy transition objectives.”

Acwa will hold a 40% equity stake in the project, which is designed to enhance the reliability and sustainability of electricity supply in the Kingdom, in line with the objectives of Saudi Vision 2030 and ongoing efforts to develop and modernize the energy sector. The project is considered one of the largest power generation projects in the Kingdom and includes the development, financing, construction, ownership, and operation of a gas-fired combined cycle power plant. The agreement also includes the development, financing, and expansion of a 380 kV substation to support grid integration and network stability.