ACWA Power, Saudi Electricity Company (SEC), and Korea Electric Power (KEPCO) have concluded the financial arrangements for the Rumah 1 and Nairyah 1 power projects in Saudi Arabia.
These independent power producer (IPP) projects involve a total investment of approximately SAR15bn ($4bn) and are set to deliver a combined capacity of 3.6GW.
The Saudi Power Procurement Company serves as the Principal Buyer, overseeing project tendering and power purchase agreements. Ownership of the project companies, Remal Energy and Naseem Energy, is divided among ACWA Power (35%), SEC (35%), and KEPCO (30%).
These initiatives align with Saudi Arabia’s Vision 2030 and the Ministry of Energy’s optimal energy mix plan. They are designed to secure a reliable power supply while contributing to Saudi Arabia’s net-zero emissions target by 2060 and ACWA Power’s goal of net zero by 2050.
Both sites are planned for potential integration with carbon capture technology.
Funding was obtained from a consortium of local, regional, and international financial institutions. These include Export Import Bank of Korea, Saudi Investment Bank, Saudi National Bank, Standard Chartered Bank, Banque Saudi Fransi, Bank of China, Industrial and Commercial Bank of China, Agricultural Bank of China, and Arab Petroleum Investments.
ACWA Power chief investment officer Thomas Brostrom said: “The successful achievement of financial closure of the Rumah 1 and Nairyah 1 IPP projects underscores the investor confidence in ACWA Power’s strategic vision and our proven track record in delivering sustainable power solutions.
“Securing financing from such a diverse group of lenders demonstrates the bankability of these projects and their alignment with global sustainability objectives. We are particularly pleased with the inclusion of export credit financing, which further validates the international significance of these projects.
“This financial achievement reinforces our commitment to providing reliable and cost-effective power while actively pursuing innovative solutions for a cleaner energy future.”
The Rumah 1 project involves constructing a 1.8GW combined cycle gas turbine (CCGT) plant in Riyadh Province.
Remal Energy will manage this project with an investment of about SAR7.5bn ($2bn).
Concurrently, the Nairyah 1 project includes an identical CCGT plant in the Eastern Province. Naseem Energy will handle this development with the same investment value.
In March 2025, Mitsubishi Power announced receiving orders for equipment for these projects. In partnership with Doosan Enerbility, Mitsubishi Power will provide six M501JAC gas turbines and related equipment.
