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Saudi Electricity Company (SEC) has signed a power purchase agreement with Saudi Power Procurement Company (SPPC) for electricity from the Rabigh 1 expansion project, which has a generation capacity of 1,179 megawatts (MW) and a total investment value of $1.4 billion. The project will support Saudi Arabia's efforts to improve efficiency and reduce emissions, incorporating a future carbon capture unit.

The agreement, which covers a 25-year term, positions SPPC as the main buyer of electricity, enhancing its role in the Kingdom's power generation market. SEC anticipates the financial impact of the project to begin in Q2 2027.

As of September 2025, SEC's total assets stood at $165.2 billion, reinforcing its status as the largest utility in the Middle East. This agreement follows SEC's recent $2.4 billion Sukuk issuance and additional power purchase agreements worth $3.4 billion for other gas turbine plants in Riyadh.