TAQA, JERA, and AlBawani Partner to Build Two New High-Efficiency Power Plants in Saudi Arabia

TAQA, JERA, and AlBawani Join Forces for New Saudi Power Projects

Three big companies—TAQA, JERA, and AlBawani—are teaming up to build two new power plants in Saudi Arabia. They have signed agreements to provide power to Saudi Arabia for the next 25 years. These plants, called Rumah 2 IPP and Al Nairyah 2 IPP, will use advanced technology to generate electricity efficiently. Each plant will have the ability to produce 1.8 gigawatts (GW) of electricity. Together, they will create a total of 3.6 GW of power, making them some of the most efficient gas power plants in the region.

New Gas Power Plants to Support Saudi Vision 2030

The two power plants will use the latest gas turbine technology, which is both highly efficient and environmentally friendly. These turbines are designed to help Saudi Arabia reach its goal of having a balanced mix of power sources. By 2030, the country wants half of its electricity to come from renewable energy and the other half from gas. These plants also align with the Saudi Green Initiative, which aims to reduce greenhouse gases and achieve net-zero emissions by 2060 or even earlier if technology advances fast enough.

A Strong Partnership for Saudi’s Energy Future

The projects are a collaboration between three companies:

• TAQA, a large energy company based in Abu Dhabi
• JERA, the biggest power company in Japan
• AlBawani, a well-known construction and development group in Saudi Arabia.

Together, they will build, own, and operate the power plants. TAQA will have the largest share, owning 49% of the project. JERA will hold 31%, and AlBawani will have 20%. All three companies will also take care of the daily operation and maintenance of the plants.

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Why These Projects Are Important

These new power plants will not only provide clean and reliable electricity but also support Saudi Arabia’s big plans for the future. The country is working hard to become a leader in clean energy, and these plants are a key part of that plan. By using advanced gas technology, they will help lower carbon emissions while meeting the growing demand for electricity in Saudi Arabia.

TAQA’s CEO, Farid Al Awlaqi, said, “This project is a big step forward for our goal of reaching 150 GW of power by 2030. We are proud to be the lead developer and to manage these world-class plants.”

Steven Winn, a top executive at JERA, also emphasized the importance of these projects in supporting JERA’s goal of net-zero emissions by 2050. “These projects are an example of how we can create efficient and sustainable energy,” he said.

Eng. Fakher AlShawaf, CEO of AlBawani, noted that this partnership is a major milestone for his company, aligning with Saudi Arabia’s Vision 2030. “We are committed to creating a reliable and efficient energy solution that meets Saudi Arabia’s needs and provides new opportunities for growth,” he said.

Financial Close and Ongoing Projects

Earlier this year, TAQA and JERA successfully closed a financial deal for another energy project in Saudi Arabia. This project will produce both electricity and steam for a petrochemical plant in Jubail, which is in the Eastern Province of the country.

About the Companies Involved

TAQA is a major energy company from Abu Dhabi with investments around the world. It is known for its work in electricity, water, and oil. The company aims to be a leader in clean energy and sustainable development.

JERA is Japan’s largest power company and produces a big part of the country’s electricity. It has a global presence and focuses on clean energy projects. JERA plans to reach net-zero emissions by 2050.

AlBawani is a leading construction and development company in Saudi Arabia. It is involved in many sectors, including energy, construction, and technology. The company is committed to supporting Saudi Arabia’s development goals, including Vision 2030.

These new power projects are expected to play a key role in Saudi Arabia’s shift to cleaner and more efficient energy. They also provide a great example of how companies from different countries can work together to achieve shared goals.