Acwa, a Saudi-listed multinational leader in sustainability infrastructure, has signed a Power Purchase Agreement with the Saudi Power Procurement Company (Power Projects Tendering Company) for the expansion of the Rabigh 2 Independent Power Plant (IPP), marking one of the largest power generation contracts in the Kingdom with a value of USD 3.07 billion.

Agreement Details and Project Scope

The agreement covers the development of a gas-fired combined cycle power plant located in the Makkah Region of Saudi Arabia. The project carries a total generation capacity of 2,313.5 MW and is designed with readiness for the future installation of a carbon capture unit.

The contract encompasses the development, financing, construction, ownership, and operation of the gas-fired combined cycle power plant.

In addition to the generation facility itself, the agreement includes the development, financing, and expansion of a 380 kV substation, which is intended to support grid integration and network stability across the Kingdom.

Acwa will hold a 40% equity stake in the project, which the company describes as one of the largest power generation projects in Saudi Arabia.

Strategic Objectives and Vision 2030 Alignment

According to Acwa, the Rabigh 2 IPP Expansion Project is designed to enhance the reliability and sustainability of electricity supply in the Kingdom, consistent with the objectives of Saudi Vision 2030 and ongoing national efforts to develop and modernize the energy sector.

Omar Al Hassan, Acwa's Country General Manager for Saudi Arabia, said the signing of the Power Purchase Agreement marks an important milestone for the company and reinforces its commitment to supporting the continued development of the Kingdom's electricity infrastructure.

He stated that the project will play a meaningful role in enhancing generation capacity and strengthening supply reliability, while contributing to Saudi Arabia's broader energy transition objectives.

Khaled Al Medbel, Acwa's Vice President of Regional Business Development for Saudi Arabia and the Middle East, described the agreement as reflecting the continued trust and partnership between Acwa and the Saudi Power Procurement Company.

He added that it underscores the company's confidence in the Kingdom's energy market and its commitment to delivering strategic, large-scale power generation solutions that support Saudi Arabia's competitiveness and long-term development ambitions.

Company Background

Acwa describes itself as the world's largest private water desalination company, a leader in the energy transition, and a first mover into green hydrogen at scale. The company is headquartered in Riyadh, Saudi Arabia.

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