Under the auspices of His Excellency the Minister of Water and Electricity Engineer Abdullah Al-Hussain, ACWA Power company celebrated the occasion of the signing completion of the (PPA) Power Purchase Agreement for Rabigh 2Independent Power Project (IPP), as well as finalizing the finance agreements between the Saudi Electricity Company (SEC) and Al-Murjan for Electricity Production Company, ” the project company”.
The ceremony, which was held at the Ritz Carlton Hotel in the city of Riyadh has been attended by a combination of specialists and those interested in the field of energy, as well as the project partners.
The project will deliver net 2060 MW of electricity to SEC under the PPA which has a term of 20 years from the scheduled commercial operations date of June 2017. The winning consortium selected Siemens for the gas turbine generator unit and steam turbine generator unit, and Samsung C&T to engineer procure and construct (“EPC”) the project. Once completed, the plant will be operated by the First National Operation & Maintenance Company (“NOMAC”), a subsidiary of ACWA Power, under a long-term Operations & Maintenance (“O&M”) contract. The project agreements and finance agreements were all signed simultaneously.
The project, to be developed on a BOO (build, own, operate) basis, will be located in Rabigh, on the western coast of Saudi Arabia, 130 Km north of Jeddah adjacent to the Rabigh 1 IPP and other existing SEC facilities. The Project, the fourth in SEC’s IPP program represents another significant milestone in the Saudi power sector given that this will be the first IPP to utilize combined Cycle Power plant with a gross thermal efficiency of c.58.8 % at Reference Site Conditions at Rabigh. The project company “Al-Mourjan for Electricity Production Company” has been established with the winning ACWA Power consortium and SEC owning 50% each.
R2IPP is a greenfield independent power project with a net generation capacity of2060 MW. The project will utilize Natural Gas as main Fuel and Arabian Super Light (ASL) as backup Fuel and with the application of combined Cycle Power plant in a configuration of three groups, each comprised of two gas turbines of enhanced efficiency, two heat recovery steam generators (“HRSG”) and one triple pressure steam turbine which will substantially reduce the fuel consumption, the impact on sea water temperatures and carbon emissions to the environment. R2IPP comprises 3 identical power blocks, each delivering a net output of 686.5 MW. The R2IPP plant will comply with all applicable environmental laws, guidelines, regulations and standards of the World Bank, IFC and the Saudi Presidency of Meteorology and Environment (“PME”).
Mohammed Abunyyan, chairman of ACWA Power stated;“A project of this magnitude and of such a large scale would not have existed without our leadership’s vision for the future, which cleared the way for the private sector’s participation. I would like to take this the opportunity to thank His Excellency the Minister of Water and Electricity,Engineer Abdullah Al-Hussain for honoring this event with his presence”.
Managing Director of ACWA Power Engineer Thamer Al Sharhan said; “ACWA Power is the lead developer of Rabigh 2 IPP not only because it will be the most efficient power plant in the Kingdom and MENA regional as well, but also because we have been able to establish a team of developers, equipment suppliers, EPC Contractor, O&M contractor and international & local lenders who, working together have been able to achieve a competitive tariff for SEC, which in turn will help to deliver value to the economic expansion of the country and at the same time serve the electricity needs of more than 2.5 million people in more than four hundred thousand households.”
Saleh Alsadun | Corporate Communications- Specialist
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