ACWA Power and Saudi Energy have signed a power purchase agreement with Saudi Power Procurement Company to expand the Rabigh 2 independent power plant near Mecca.
The SAR 11.5 billion (USD 3.1 billion) project will add 2.3GW of capacity and includes the extension of a 380kV substation. The plant is designed to accommodate future carbon capture integration, supporting Saudi Arabia’s long-term energy transition goals.
The agreement runs for 31 years, with SPPC acting as the principal electricity offtaker. ACWA Power and Saudi Energy will each hold 40% stakes in the project company.
The deal reinforces Saudi Arabia’s ongoing investment in power infrastructure to meet rising demand and strengthen energy security.
Gulf Economist Staff Writer