SEC signs power purchase agreement for Riyadh IPP
20 year take off agreement with Kahrabel GDF SUEZ consortium signed.
The consortium around Kahrabel GDF SUEZ responsible for the construction of 1,729 MW Riyadh power plant in Saudi Arabia signed a 20-year power purchase agreement with Saudi Electricity Company (SEC) on Tuesday.
SEC will be the sole buyer of the power sold by Dhuruma Electricity Company, the project company in which it has 50% participation, with the sponsor consortium owning the remaining half.
“With this signing of the Power Purchase Agreement we have reached an important first milestone in the project,” said Shankar Krishnamoorthy, CEO of Kahrabel GDF SUEZ Group.
Riyadh IPP is a greenfield gas-fired independent power project with a capacity of 1,729 MW, situated about 125 km west of the Kingdom’s capital. Total investment cost will be approximately US$2.1 billion. Early power is expected by May 2012 and full completion of the plant is scheduled by March 2013. The Kahrabel GDF SUEZ Group holds a 20 percent shareholding, Aljomaih Holding Co and Sojitz Corporation, the other companies in the consortium, each hold 15 percent.
The consortium will be working with Hyundai Heavy Industries (HHI) as EPC contractor. HHI is also part of the consortium lead by GE that has been executing the EPC for Marafiq Jubail IWPP, the largest combined power and desalination plant in the world, built in the Kingdom by a consortium led by Kahrabel GDF SUEZ.