ACWA Power secures $3.4bn financing for two major power projects in Saudi Arabia
ACWA Power, in partnership with Saudi Electricity Company (SEC) and Korea Electric Power Corporation (KEPCO), has finalied senior debt financing for two major independent power producer (IPP) projects in Saudi Arabia, Rumah 1 and Nairyah 1, with a combined capacity of 3,600 megawatts (MW). The total financing package amounts to SAR 12.8 billion ($3.4 billion).
The projects will be developed and operated by two joint ventures: Remal Energy Company (Rumah 1) and Naseem Energy Company (Nairyah 1), with ownership split between ACWA Power (35%), SEC (35%), and KEPCO (30%). Saudi Power Procurement Company (SPPC) will serve as the principal buyer.
Backed by a syndicate of regional and international lenders, including the Export-Import Bank of Korea (KEXIM), Saudi National Bank, Bank of China, and Standard Chartered Bank, the financing reflects growing investor confidence in Saudi Arabia’s energy diversification efforts. Each project secured $1.7 billion in funding.
Rumah 1 will be located in Riyadh Province, while Nairyah 1 will be developed in the Eastern Province. Both will feature advanced combined cycle gas turbine (CCGT) technology, supporting the Kingdom’s strategy to increase fuel efficiency, reduce emissions, and enable future integration of carbon capture systems. These initiatives align with Saudi Arabia’s Vision 2030 goals and its pledge to achieve net-zero emissions by 2060.
“This successful financial close reinforces our role as a leader in delivering cost-effective, sustainable energy solutions,” said Thomas Brostrom, Chief Investment & Development Officer at ACWA Power. “The strength and diversity of our lending group shows global alignment with our clean energy ambitions.”
Manish Manchandya, Executive Vice President at SEC and Acting CEO of Energy Infrastructure Consortium Company, called the projects a “testament to the strength of our partnerships and the Kingdom’s credibility in attracting strategic investment.”
The Rumah 1 and Nairyah 1 projects are set to play a pivotal role in Saudi Arabia’s evolving energy mix, creating high local content value and ensuring reliable electricity supply across key regions.
