KEPCO Wins Two Large-Scale Gas Combined Cycle Projects in Saudi Arabia... "Expecting 4 Trillion KRW in Sales"

Saudi Arabia... Third Solar Power Project Contract This Year Following US Guam Deal

Korea Electric Power Corporation (KEPCO) has secured two gas combined cycle power plant projects in Saudi Arabia. Each project involves building a 1.9GW power plant and selling electricity for 25 years, with KEPCO expecting approximately 4 trillion KRW in revenue.

KEPCO announced on the 21st that it has been selected as the successful bidder for the construction and operation of the Saudi Luma 1 and Nairiya 1 gas combined cycle power plants, which were tendered internationally by the Saudi Power Procurement Company (SPPC), and is about to sign the power sales contract.

KEPCO Headquarters Building. (File photo)

This is KEPCO's third overseas power plant order this year. Previously, KEPCO won the Round 5 Sawadi solar power project tendered by the Saudi Power Procurement Company and the energy storage system (ESS)-linked solar power project tendered by the Guam Power Authority in the United States.

The newly secured Saudi Luma 1 and Nairiya 1 projects involve constructing 1.9GW combined cycle power plants each by 2028 and selling all the electricity produced over the next 25 years to the Saudi Power Procurement Company. KEPCO formed a consortium with the Saudi Electricity Company (SEC) and Saudi Arabia's largest private power producer (ACWA Power), securing the largest power generation project since the Barakah nuclear power project.

Through this project, KEPCO expects overseas sales of approximately 4 trillion KRW (about 3 billion USD) in equity revenue, and Doosan Enerbility will participate in the power plant construction, anticipating about 2 trillion KRW in accompanying overseas exports.

KEPCO has been operating the 1.2GW Rabigh heavy oil power plant in Saudi Arabia since winning the project in 2009. In 2022, KEPCO secured the 317MW Jafurah combined heat and power project tendered by Saudi Aramco and is currently constructing it.

A KEPCO official stated, "With this being the third international bidding project won this year, KEPCO has once again proven its status in the global energy market, especially in the Middle East. Building on these consecutive successes, KEPCO plans to accelerate its entry into the Middle Eastern market, where numerous projects in gas combined cycle, renewables, grid, and ESS are expected to be continuously tendered, seeking new revenue streams and expanding its role as a global energy leader."