Saudi Power Procurement Company (SPPC)

The Saudi Power Procurement Company (SPPC) is a government-owned entity in Saudi Arabia responsible for procuring electricity from independent power producers (IPPs). SPPC plays a vital role in the Kingdom of Saudi Arabia's power sector by procuring electricity from private sector companies, ensuring a stable supply to meet the country's growing energy demands. SPPC operates independently to promote competition and transparency in the power market. It oversees the procurement process, including the request for proposals (RFP) and contract negotiations with IPPs. It conducts competitive bidding processes to select IPPs for various power projects. These projects contribute to the diversification of the Kingdom's energy sources and enhance the overall capacity of the national grid. SPPC negotiates power purchase agreements (PPAs) with selected IPPs, defining the terms of electricity supply, pricing, and other relevant conditions. These contracts are crucial for ensuring a stable and reliable power supply. It operates under the regulatory framework established by the Electricity and Cogeneration Regulatory Authority (ECRA) in Saudi Arabia. ECRA oversees the electricity market and ensures compliance with regulations.