Aljomaih Energy & Water Company (AEC), in collaboration with Ajlan & Bros Group, Buhur for Investment Company, and the EDF Group, announced the successful financial close of the Taiba-2 and Qassim-2 Independent Power Plant (IPP) projects in Saudi Arabia, totaling 3.96 gigawatts (GW).
The projects, valued at $3.9 billion (approximately 14.6 billion Saudi riyals), secured funding through a combination of Equity Bridge Financing and Senior Debt from several financial institutions including Riyad Bank, Saudi Awwal Bank, Abu Dhabi Commercial Bank (SDCB), and others as per AEC’s press statement.
Taiba-2 and Qassim-2 IPPs, signed under Power Purchase Agreements (PPA) in November 2023, mark a significant step towards Saudi Arabia’s energy goals. Ibrahim Al Jomaih, Chairman of AEC, expressed pride in leading the consortium in developing these projects, emphasizing their innovative design with provisions for Carbon Capture.
Ajlan Al-Ajlan, Chairman of Ajlan & Bros Group, highlighted the alignment of these projects with Saudi Arabia’s Vision 2030 objectives. Meanwhile, Mutlaq Alghwairi, Chairman of Buhur for Investment Company, underscored the milestone achieved within the first year of Buhur’s operation.
Beatrice Buffon, Vice President of EDF Group, emphasized the integration of advanced technology to enhance power generation efficiency and reduce carbon emissions.
The IPPs will feature HL-class gas turbines from Siemens Germany, along with steam turbines and generators. Legal advisory services were provided by Al Tamimi & Company to the Saudi Power Procurement Company (SPPC) for the Qassim-1 & 2 and Taiba-1 & 2 power projects.
Saudi Arabia aims to achieve a balanced electricity production mix by 2030, targeting 50% from renewable energy and 50% from highly efficient gas-fired plants, while significantly reducing carbon dioxide emissions.
Comments