riyadh, Saudi Arabia – Saudi Electricity Company and Aqua Power have announced the successful completion of financial closure for two notable gas-fired power plant projects. The projects, Ramah Station Project 1 and Al-Nairiya Station project 1, will utilize advanced combined cycle turbine technology to deliver crucial energy capacity to the Kingdom.
$3.4 Billion Investment Secured
Table of Contents
- 1. $3.4 Billion Investment Secured
- 2. A Diverse Lender Consortium
- 3. Project Details and Capacity
- 4. Saudi Arabia’s Energy Sector – A Growing Landscape
- 5. Frequently Asked Questions About the Power Projects
- 6. What impact will the $3.41 billion financing have on Saudi ArabiaS progress towards its Vision 2030 renewable energy goals?
- 7. Saudi Arabia Secures 12.8 Billion Riyals Financing for Aqua Power’s Ramah 1 and Al-Naeariya 1 Electricity Projects
- 8. Project Overview: Ramah 1 & Al-Naeariya 1 – Powering Saudi Vision 2030
- 9. Financing Details & Key Lenders
- 10. Ramah 1: Solar Power Innovation in Al-Jouf Province
- 11. Al-Naeariya 1: A Combined Cycle Gas Turbine (CCGT) Power Plant
- 12. Impact on Saudi Arabia’s Energy Transition
- 13. ACWA Power’s Role & Future Projects
The total financing secured stands at 12.8 billion Saudi Riyals, equivalent to $3.4 billion United States dollars. This substantial investment, arranged as of August 21, 2025, has a repayment term of approximately 28 years. Guarantees for the funding include a limited guarantee on Aqua Power’s share of a bridging loan, early production revenues, reserve liquidity, and a dedicated reserve account.
A Diverse Lender Consortium
Financing for these vital projects comes from a diverse consortium of lenders. This includes Korean Export and Import Bank (Kexim), Saudi National Bank, Saudi Investment Bank, Saudi Fransi Bank, Standard Chartered Bank, China Bank, the Agricultural Bank of China, the Industrial and Commercial Bank of China, and the Arab Petroleum Investments Corporation.
Project Details and Capacity
The core objective of this financing is the advancement,construction,ownership,and operation of two state-of-the-art gas stations designed for efficient electricity production.Aqua Power and Saudi Electricity each hold a 35% stake in both projects,with Kipco representing the remaining partnership interest. Last November, Aqua Power finalized Power Purchase Agreements (PPAs) with the Saudi Energy Procurement Company for these projects.
the ramah Station Project 1 and Al-Nairiya Station Project 1, situated in the Riyadh and Eastern regions respectively, boast a combined production capacity of 3,600 megawatts – 1,800 megawatts per station. The total project value is estimated at 15 billion saudi Riyals.
| Project | Location | Capacity | Project Value |
|---|---|---|---|
| Ramah Station Project 1 | Riyadh Region | 1,800 MW | Part of $15 Billion Total |
| Al-Nairiya Station Project 1 | Eastern Region | 1,800 MW | Part of $15 Billion Total |
did You Know? Saudi Arabia is actively investing in diversifying its energy mix,with a significant focus on renewable energy sources alongside natural gas.
Pro Tip: Combined cycle gas turbine technology offers higher efficiency and lower emissions compared to traditional power generation methods.
This investment demonstrates a strong commitment to bolstering Saudi Arabia’s energy infrastructure to meet growing demand and support economic expansion.
Saudi Arabia’s Energy Sector – A Growing Landscape
Saudi Arabia, a global energy leader, is undergoing a significant change in its power generation landscape.According to the International Energy Agency, the Kingdom is investing heavily in both traditional and renewable energy sources to ensure a secure and sustainable energy future. The country aims to significantly increase its installed power capacity in the coming years to meet the needs of a rapidly growing population and diversifying economy.
Frequently Asked Questions About the Power Projects
- What is the primary goal of these power projects? To develop, build, and operate new gas-fired power plants to increase electricity production capacity in Saudi Arabia.
- Who are the key players involved in the financing? A consortium of local,regional,and international lenders,including Kexim and major Saudi banks.
- What is the meaning of combined cycle technology? It offers greater efficiency and reduced emissions compared to older power generation methods.
- What is the total investment value for both projects? The total value of the projects is estimated at 15 billion Saudi Riyals.
- What is the duration of the financing? The financing has a repayment term of approximately 28 years.
- What role dose the Saudi Energy procurement Company play? it serves as the primary purchaser of the electricity generated by these projects through Power Purchase Agreements.
- How will this project help energy security in Saudi Arabia? By increasing the kingdom’s power generation capacity and reducing reliance on other countries.
What are your thoughts on Saudi Arabia’s investment in energy infrastructure? Share your opinions in the comments below!
What impact will the $3.41 billion financing have on Saudi ArabiaS progress towards its Vision 2030 renewable energy goals?
Saudi Arabia Secures 12.8 Billion Riyals Financing for Aqua Power’s Ramah 1 and Al-Naeariya 1 Electricity Projects
Project Overview: Ramah 1 & Al-Naeariya 1 – Powering Saudi Vision 2030
saudi Arabia has solidified its commitment to renewable energy and infrastructure development with the successful securing of 12.8 billion Saudi riyals (approximately $3.41 billion USD) in financing for two pivotal electricity projects spearheaded by ACWA Power: Ramah 1 and Al-Naeariya 1. These Self-reliant Power Projects (IPPs) are crucial components of the Kingdom’s aspiring Vision 2030 plan, aiming to diversify the energy mix and bolster sustainable power generation. The financing deal, finalized on August 24, 2025, underscores investor confidence in Saudi Arabia’s energy sector and its long-term economic outlook.
Financing Details & Key Lenders
The substantial financing package was arranged through a consortium of leading regional and international banks, demonstrating broad support for the projects. Key lenders involved include:
Saudi National Bank (SNB): Playing a critically important role as a lead arranger.
Al Rajhi Bank: Contributing substantially to the financial structure.
Riyad Bank: Further strengthening the financial backing.
Arab National Bank (ANB): Providing crucial financial support.
HSBC: Demonstrating international investor confidence.
Standard Chartered: Contributing to the global financial network supporting the projects.
The financing structure incorporates a mix of senior debt and equity contributions, ensuring a robust and sustainable financial foundation for both projects. This diversified approach mitigates risk and enhances the long-term viability of the power plants. The loan tenors are aligned with the project’s operational life, ensuring a stable repayment schedule.
Ramah 1: Solar Power Innovation in Al-Jouf Province
Ramah 1, located in the Al-Jouf province, is a 720 MW solar photovoltaic (PV) power plant. This project represents a significant step towards increasing the share of renewable energy in Saudi Arabia’s grid.
Technology: Utilizing advanced solar PV technology for optimal energy capture.
capacity: 720 MW, capable of powering approximately 200,000 homes.
Location Advantage: Al-Jouf province benefits from high solar irradiance,maximizing energy production.
PPA: Secured a 25-year Power Purchase Agreement (PPA) with Saudi Power purchase Agreement Office (SPPA).
Ramah 1 is expected to displace approximately 885,000 tons of carbon dioxide emissions annually, contributing significantly to Saudi Arabia’s environmental goals. The project also creates numerous employment opportunities during construction and operation.
Al-Naeariya 1: A Combined Cycle Gas Turbine (CCGT) Power Plant
Al-Naeariya 1, situated in the Eastern Province, is a 1,200 MW combined cycle gas turbine (CCGT) power plant. This project is designed to provide reliable baseload power to meet the Kingdom’s growing energy demands.
technology: Employing state-of-the-art CCGT technology for high efficiency and reduced emissions.
Capacity: 1,200 MW, a substantial addition to the national grid capacity.
Fuel Source: Utilizing natural gas, a relatively cleaner fossil fuel compared to other alternatives.
Strategic location: Eastern Province, close to gas sources, minimizing transportation costs.
PPA: Also secured a 25-year Power Purchase Agreement (PPA) with SPPA.
Al-Naeariya 1 will play a vital role in ensuring grid stability and supporting the integration of intermittent renewable energy sources like solar and wind power.
Impact on Saudi Arabia’s Energy Transition
These projects are integral to Saudi Arabia’s ambitious energy transition goals outlined in Vision 2030. The Kingdom aims to generate 50% of its electricity from renewable sources by 2030.
Diversification of Energy Sources: Reducing reliance on oil for power generation.
Increased Renewable Energy Capacity: Significantly boosting the country’s solar and wind power capacity.
Attracting Foreign Investment: Demonstrating a favorable investment climate for renewable energy projects.
Job Creation: Generating employment opportunities in the renewable energy sector.
Environmental Sustainability: Reducing carbon emissions and promoting a cleaner habitat.
ACWA Power’s Role & Future Projects
ACWA power,a leading Saudi Arabian developer,investor,and operator of power generation and desalinated water projects,has been instrumental in driving the Kingdom’s energy transition. The company’s expertise in project development, financing, and operations has been crucial to the success of Ramah 1 and Al-Naeariya 1. ACWA Power is currently involved in several other large-scale renewable energy projects across Saudi Arabia, including:
* NEOM Green Hydrogen Project: A groundbreaking project to produce green hydrogen using renewable energy
