Project highlight: Rumah 1 and Nairyah 1 combined-cycle plants

Saudi Arabia

May 13, 2025

Rumah 1 and Nairyah 1 are two combined-cycle gas-fired power plants being developed as conventional IPP projects in Saudi Arabia. Together with Rumah 2 and Nairyah 2, which are currently slated for later construction, they will reinforce the security and reliability of Saudi Arabia’s power supply and help meet the growing demands on the country’s electricity grid.

With a combined capacity of 3.6 GW, the greenfield Rumah 1 and Nairyah 1 projects will decrease the amount of liquid fuel consumed by the power sector, shift the country’s energy mix towards renewables and gas, and contribute to lowering carbon dioxide emissions in alignment with the net-zero targets set out in Vision 2030 and the Saudi Green Initiative.

KEY PLAYERS: The consortium comprising the Saudi Electricity Company (SEC), ACWA Power and Korea Electric Power Corporation (KEPCO) emerged as the winning bidder for the Rumah 1 and Nairyah 1 projects. SEC acts as the consortium’s managing and technical member. The Saudi Power Procurement Company is the principal buyer under a 25-year power purchase agreement signed in November 2024.
The consortium is responsible for the development, financing, construction, ownership and operation of the plants. Joint ownership of the venture is structured with SEC and ACWA Power each holding a 35% interest, and KEPCO holding the remaining 30%.
EPC for the project was awarded to a consortium comprising China’s SEPCOIII and South Korea’s Doosan Group, and Mitsubishi Power was selected to supply the gas turbines.

TIMELINE:
Q4 2024: Winning bids announced and PPA signed
Q1 2025: EPC contract awarded
Q2 2027: Expected operational date

INVESTMENT: The combined investment in Rumah 1 and Nairyah 1 is estimated at USD 4 billion. The EPC portion of the project is valued at USD 1.5 billion.

SPECIFICATIONS: Rumah 1 and Nairyah 1 will rank among the world’s largest combined cycle power plants. Rumah 1 is located 80 kilometres east of Riyadh and is part of an existing power complex, while Nairyah 1 is located about 200 kilometres south of the border with Kuwait in Saudi Arabia’s Eastern Province.
Each will have a generation capacity of 1.8 GW, accounting for nearly 2.5% of the national grid’s capacity. The plants will provide uninterrupted baseload power with six high-efficiency M501 JAC gas turbines. It is expected that Rumah 1 and Nairya 1 will be integrated into the grid in simple-cycle mode, with subsequent transition to full operation as combined-cycle power plants.

BENEFITS: Rumah 1 and Nairyah 1 will generate power for an estimated 1.5 million households while furthering the aims of the Saudi Green Initiative and Vision 2030 to shift power generation from liquid hydrocarbon fuels to gaseous fuels and reach an energy mix in which renewable energy and natural gas each contribute half of the country’s electricity generation.
In keeping with national net-zero targets, the plants are designed with carbon circularity in mind and will hold equipment capable of housing carbon capture technologies.
The plants’ turbines will be assembled at Mitsubishi Power’s 17,730-square-metre Dammam factory. Domestic assembly of components and auxiliary equipment, and the subsequent maintenance of the same, will help develop high-specification technical skills among Saudi nationals, while the project’s investment budget is expected to have a broad economic impact and create significant opportunities for local content development and domestic supply chain contributions.

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