Abu Dhabi National Energy Company (TAQA), together with JERA Co., Japan’s largest power generation company and AlBawani Capital (AlBawani), a subsidiary of AlBawani Holding, a leading and diversified contracting and development group, announced the successful financial closing of two greenfield power plants in the Kingdom of Saudi Arabia.
Lending institutions include Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corporation, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China and First Abu Dhabi Bank.
Together, the greenfield combined cycle gas turbine (CCGT) power plants will deliver approximately 3.6 GW of power generation capacity. The projects are being developed on a build, own and operate basis and will support the Kingdom’s growing energy need.
Combined, the plants represent an investment of around US$4 billion (approximately AED14.7 billion). Financing was secured from a consortium of leading regional and international lenders through senior debt and equity bridge loans. Senior debt leverage exceeds 80%, reflecting the strong fundamentals of the projects and lender confidence.
Construction will be undertaken through special purpose entities owned by TAQA (49%), JERA (31%) and AlBawani (20%).
Operation and maintenance (O&M) will be carried out by dedicated O&M companies owned by the consortium under the same shareholding structure. Engineering, Procurement, and Construction (EPC) contracts were awarded to Harbin Electric International Co. Ltd and China Tiesiju Civil Engineering Group Co. Ltd.
Both plants will deploy highly efficient state-of-the-art, CCGT technology and are designed for future carbon capture integration, supporting the Ministry of Energy’s decarbonisation goals set out in the Saudi Vision 2030. These projects also align with the Saudi Green Initiative’s ambition to achieve net-zero greenhouse gas (GHG) emissions through a circular carbon economy by 2060.
The consortium selected Siemens Energy LLC as the Original Equipment Manufacturer for the projects, with whom the O&M companies have entered into Long Term Service Agreements.
The projects support the Kingdom’s optimum energy mix ambitions which aim to meet the growing power demand.
The projects are Rihab ElAwal Power Company (Rumah 2) and Nawras Power Company (Al Nairyah 2).
This milestone was achieved under the supervision of the Ministry of Energy, Saudi Arabia, in partnership with the Saudi Power Procurement Company (SPPC), following the signing of two 25-year Power Purchase Agreements (PPA) between TAQA, JERA and AlBawani.
