ACWA Power International will sell electricity to a Saudi state-owned utility from an independent power plant it’s building on the Kingdom’s Red Sea coast.
Saudi Electricity Co. (SECO), the government-controlled distributor known as SEC, signed an agreement yesterday to buy power from the plant under a 20-year contract starting June 2017, Riyadh-based ACWA said today in an e-mailed statement.
The plant will deliver a net 2060 megawatts of electricity to SEC and will use natural gas as the main fuel and Saudi crude Arab Super Light as a backup fuel, it said. Rabigh II will run on combined-cycle technology that will recycle the heat and steam to save fuel, it said.
ACWA and its partners including Samsung C&T Corp. (000830) won a bid to build the $2.6 billion power plant in January. The winning group selected Siemens AG (SIE) to supply the gas turbine generator units and steam turbine generator units, ACWA said in the statement. Once completed, the plant will be operated by the First National Operation & Maintenance Co., a subsidiary of ACWA Power, it said.
Saudi Arabia and other Persian Gulf oil producers are boosting power production to meet growing demand from domestic industries and expanding populations. They mainly seek private investors to build and run plants under long-term agreements to sell electricity to state-run utilities. The Kingdom is trying to shift fuel use at its future power plants to natural gas to free more crude for exports.
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