Riyadh: The Saudi Power Procurement Company (Principal Buyer), under the supervision of the Ministry of Energy, has commenced the qualification process for the third round of conventional IPP projects (CCGT). Each project will be developed under a build-own-operate (BOO) model, with the winning consortium holding 100% equity in the special purpose vehicle (SPV) established to develop and operate the Independent Power Project (IPP). Each SPV will enter into a Power Purchase Agreement with the principal buyer.
According to Saudi Press Agency, these projects contribute to the Saudi Vision 2030 by supporting the sustainable growth of the energy sector over the medium and long term through the Circular Carbon Economy (CCE) approach. This approach utilizes a range of carbon management solutions and technologies, including displacing liquid fuels with natural gas to reduce emissions intensity, while ensuring readiness to deploy carbon capture technologies in support of the Kingdom's national emissions reduction goals.
In addition to the above, the Principal Buyer is responsible for preparing preliminary studies, tendering and awarding IPP projects, and purchasing electricity from energy projects in the Kingdom of Saudi Arabia, in accordance with the Principal Buyer license issued by the Saudi Electricity Regulatory Authority (SERA). For more information on conventional energy projects, you may visit the website of the Saudi Power Procurement Company at https://pb.com.sa/ar/