Saudi Arabia has announced a significant investment of SR13.4 billion to expand the Qurayyah Independent Power Plant in the Eastern Province. This expansion aims to add 3.01 gigawatts of power generation capacity, addressing the Kingdom's growing energy demands and supporting its economic development.

The Saudi Power Procurement Company , the nation's sole licensed electricity buyer, has signed a power purchase agreement with the Saudi Electricity Company and ACWA Power for this project. The Qurayyah plant, already recognized as the world's largest combined-cycle gas-fired independent power station, will see its capacity significantly increased through this initiative.

The expansion project is designed with future sustainability in mind. Plans include the readiness to incorporate carbon capture units, aligning with Saudi Arabia's Vision 2030 objectives to enhance energy efficiency and reduce environmental impact. By integrating advanced technologies, the project aims to improve electricity generation efficiency and diversify the Kingdom's energy sources.

ACWA Power, a leading developer in the energy sector, holds an effective 35% shareholding in the project. The company's involvement underscores its commitment to advancing large-scale power projects that align with national energy strategies. The collaboration between SEC and ACWA Power is expected to leverage both entities' expertise to ensure the project's successful execution.

The Qurayyah plant's expansion is part of a broader strategy to bolster Saudi Arabia's energy infrastructure. In November 2024, SPPC signed PPAs for five independent power producer projects totaling 9,200 MW, reflecting the Kingdom's proactive approach to meeting its energy needs. These initiatives are crucial as Saudi Arabia experiences increased domestic energy consumption driven by industrial growth and urbanization.

The financial structuring of the Qurayyah expansion involves significant investments from both national and international stakeholders. The National Bank of Kuwait, for instance, signed agreements totaling $1.6 billion during the Future Investment Initiative conference in Riyadh, including a $690 million framework agreement with ACWA Power to support its expansion plans. Such collaborations highlight the confidence of financial institutions in Saudi Arabia's energy sector and its long-term viability.

The project aligns with global trends of transitioning towards more sustainable energy solutions. By preparing for carbon capture integration, the Qurayyah expansion not only addresses immediate energy demands but also positions the Kingdom as a forward-thinking player in the global energy landscape.