Expressions of Interest in Saudi Electric's 1,700-Megawatt Project Due March 21

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The deadline for the delivery of expressions of interest in the Saudi Electric Company's (SEC) new 1,700-megawatt (MW) power project at Rabigh is March 21. A competitive bidding process will be conducted by SEC to select a developer or developer consortium to build, own and operate (BOO) the thermal steam-driven independent power plant (IPP), which will be fuelled with heavy fuel oil.

The project company, which will be formed by SEC and the successful developer, will sell the total power capacity and output to SEC under a power purchase agreement (PPA). Under the PPA, SEC also will supply the heavy fuel oil and allocate land for the project.

The Rabigh IPP2 plant will be the fourth of five IPPs planned by SEC. The combined output of the plants will add 11,000 MW to the Saudi grid. Three of the other plants are now under construction, including the 1,200-MW Rabigh IPP2.

In September 2011, SEC contracted with a consortium led by Saudi Acwa Power Projects, which included Samsung C&T Corporation (KRX:000830) (Seoul, South Korea), to construct a 4,000-MW, gas-fired plant that has been nominated as the third project.

SEC is planning to increase its generation capacity by 30,000 MW by 2018 to meet domestic demand, which is growing at an average annual rate of about 8%.

For related information, see February 10, 2012, article - Saudi Arabia Aims to Double Capacity with 50,731 Megawatts of Additional Power by 2020.

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