Riyadh - Mubasher: Acwa Power Company and Saudi Energy Company inked a SAR 11.50 billion power purchase agreement (PPA) with Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant (IPP) expansion project.
The agreement covers the development, financing, construction, ownership, and operation of a combined cycle gas turbine (CCGT) power plant in Makkah Province, according to two bourse filings.
Holding a capacity of 2,313 megawatts (MW), the project is designed with readiness to integrate carbon capture units. It will operate under a 31-year agreement, which covers the development, financing, and construction of an extension to a 380 kilovolt (kV) electrical substation.
Acwa and Saudi Energy each hold an effective 40% stake in the project. The agreement was signed on 16 April 2026 with SPPC acting as the principal buyer.
The financial impact of the operation will be unveiled once the project reaches financial close.
Earlier this year, both companies announced rebranding, with Saudi Electricity Company (SEC) changing its new corporate identity to Saudi Energy, while the other Saudi utility giant unveiled a new brand identity to acwa.
