Saudi Electricity Company Signs US$1.4 billion Power Plant Expansion Deal for Rabigh 1 Expansion

Saudi Electricity Company (SEC) has signed a long-term power purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC) to buy electricity generated from the Rabigh 1 expansion power plant in the Western Province of Saudi Arabia.

Under the agreement, the SPPC will purchase electricity generated by the large-scale combined-cycle gas turbine (CCGT) facility in the Western Province of Saudi Arabia, which has a total capacity of 1,179 MW. The project’s overall investment amounts to US$1.4 billion (SAR 5.33 billion). It will be delivered through a long-term framework encompassing financing, construction, ownership, and operation, with a 25-year contractual term starting from the plant’s commercial operation date. SPPC, wholly owned by SEC, will serve as the main purchaser of the electricity produced by the plant.

The financial effects of the Rabigh 1 expansion are expected to start reflecting on SEC’s balance sheet from Q2 of 2027. SEC continues to be Saudi Arabia’s leading electricity producer and the sole owner and operator of the national transmission and distribution network. The Rabigh 1 expansion is part of a broader investment programme designed to enhance generation capacity and meet increasing electricity demand resulting from population growth, industrial development, and economic diversification.