Saudi Electricity Company Signs Power Purchase Agreement for Rabigh 1 Expansion Project
Saudi Electricity Company (SEC) has signed a 25-year power purchase agreement with Saudi Power Procurement Company (SPPC) for the Rabigh 1 expansion project, which will generate 1,179 megawatts (MW) with a $1.4 billion investment. This initiative aims to enhance efficiency and reduce emissions, featuring a future carbon capture unit, and is expected to impact SEC's finances starting in Q2 2027. The agreement strengthens SPPC's role in the Kingdom's energy market, following SEC's recent financial activities totaling $5.8 billion.
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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.
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