Acwa has announced the signing of a power purchase agreement (PPA) with the Saudi Power Procurement Company for the Rabigh 2 Independent Power Plant Expansion project.

With a contract value of SR11.5 billion ($3 billion), the project encompasses the development of a gas fired combined cycle power plant located in the Makkah Region of Saudi Arabia, with a total capacity of 2,313.5 MW and readiness for the future installation of a carbon capture unit.

Acwa will hold a 40 per cent equity stake in the project.

The project is considered one of the largest power generation projects in the Kingdom and includes the development, financing, construction, ownership, and operation of a gas fired combined cycle power plant.

The agreement also includes the development, financing, and expansion of a 380 kV substation to support grid integration and network stability.

Omar Al Hassan, Acwa’s Country General Manager - KSA, stated: “The signing of this Power Purchase Agreement marks an important milestone for Acwa and reinforces our commitment to supporting the continued development of the Kingdom’s electricity infrastructure. The Rabigh 2 IPP Expansion Project will play a meaningful role in enhancing generation capacity and strengthening supply reliability, while contributing to Saudi Arabia’s broader energy transition objectives.”