Saudi Arabia Launches Round 3 of Gas-Fired IPP Projects

Saudi Arabia is moving ahead with a third round of conventional gas-fired Independent Power Producer (IPP) projects, adding around 7.2 gigawatts of new generation capacity to the national grid. The programme uses combined-cycle gas turbine (CCGT) technology under a Build–Own–Operate model, with the qualification deadline extended to 23 August 2026 to give developers more time to apply.

The Saudi Power Procurement Company (SPPC), under the Ministry of Energy, is running the process as the principal buyer. Round 3 covers four new gas-fired power plants, each with a planned capacity of about 1,800 MW. The plants will be designed to be carbon-capture ready, so future carbon-capture units can be added in line with the Kingdom's circular carbon economy framework.

Under the structure, each project company will sign a long-term power purchase agreement with SPPC. Interested developers and consortia must register and submit qualification documents through the official SPPC electronic procurement portal. As with earlier CCGT projects such as Rumah and Nairyah, developers are required to sign a confidentiality undertaking before accessing the request-for-qualification documents.

Developers already prequalified for the Rumah and Nairyah IPPs as financial or technical members can carry over their qualification to the new projects by submitting a formal request and updated financial information before the deadline. New financial members must show financial close on at least two non-recourse power or water projects since January 2010, with at least one project carrying senior debt of USD 500 million or more, and a minimum net worth of USD 350 million.

The expansion matters for residents across the Kingdom because reliable, cleaner-burning generation supports a stable power supply for homes and businesses in fast-growing cities such as Riyadh, Jeddah and Dammam. Building the plants to be carbon-capture ready also signals a longer-term push toward lower emissions as electricity demand continues to rise.

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