Acwa, SPPC sign SAR 11.5B PPA for Rabigh 2 power plant expansion

ACWA Power (Acwa) signed a power purchase agreement (PPA) with Saudi Power Procurement Co. (SPPC), valued at SAR 11.5 billion.

The deal covers the Rabigh 2 independent power plant expansion, a combined-cycle gas-fired project located in Makkah, with a generation capacity of 2,313.5 megawatts and readiness for carbon capture integration.

In a statement to Tadawul, the company said the contract term is 31 years from the expected commercial operation date of the full plant. Acwa holds a 40% stake in the project.

The project includes development, financing, construction, ownership and operation of a gas-fired combined-cycle power plant. It also includes the development, financing and construction of a 380-kilovolt substation expansion.

Acwa noted the financial impact will be disclosed upon reaching financial close.

SPPC is a related party, the statement pointed out.