ACWA Power put into service the first units of Taiba 1 y Qassim 1 two combined cycle power plants under construction in Saudi Arabia that will reach close to 3.8 GW of combined capacity when they are fully operational.
The Saudi company began initial power generation at both facilities, which are scheduled to be fully operational by 2027. In this first phase, the two power plants add up to 2,555 MW of operating capacity Taiba 1 started with 1,272 MW, while Qassim 1 added another 1,283 MW.
Once completed, both plants will reach a combined capacity of approximately 3.8 GW, the projects are part of the expansion of Saudi Arabia’s electrical infrastructure and represent an investment of over 13. billion Saudi riyals, equivalent to about $3.5 billion.
Taiba 1 and Qassim 1 are advancing towards 3.8 GW
Taiba 1, located in the Medina region, will have a planned total capacity of 1,934 MW, its first units have already received authorization to operate with a combined capacity of 1,272 MW.
For their part, Qassim 1 it will reach a final capacity of 1,896 MW, the units that started operations initially contribute 1,283 MW.
With this first stage, ACWA Power and its partners have added more than 2.5 GW of new generation capacity to the Saudi electricity system. Full commercial operation of both plants is scheduled for 2027.
Power plants prepared to use mixtures with hydrogen
Taiba 1 and Qassim 1 use technology from combined cycle gas turbines (CCGT), this type of installation uses the heat generated by gas turbines to produce additional electricity through a steam cycle, thus increasing the plant’s efficiency.
The power plants incorporate 7HA.03 turbines supplied by GE Vernova, these units are designed to operate with fuel mixtures that can contain up to 50% hydrogen by volume.
This capacity corresponds to a technical characteristic of the turbines and does not mean that the plants are currently using a mixture of hydrogen and natural gas.
The infrastructure is thus prepared to incorporate this type of fuel in the future, provided that the availability of hydrogen and the evolution of the Saudi energy system allow its use on a larger scale.
ACWA Power maintains a 40% stake
ACWA Power owns a stake in 40 % in each of the companies established to develop the projects, in Taiba 1, it participates through Sidra One for Electricity Company, while Qassim 1 is managed by Qudra One for Electricity Company.
Other participants include Saudi Energy and Haji Abdullah Alireza & Company, both projects also have power purchase agreements for 25 years with Saudi Power Procurement Company (SPPC), the entity responsible for acquiring energy for the Saudi market.
The projects will have a financial impact starting in 2026.
ACWA Power expects that the financial effect of the initial operations of Taiba 1 and Qassim 1 will begin to be reflected in its results from the fourth quarter of 2026.
The launch comes in a year in which the company recorded a 36% year-on-year drop in its net profit during the second quarter of 2026, to 308 million Saudi riyals.
Despite this result, ACWA Power continued to expand its project portfolio, adding 5.2 GW of power generation capacity and 0.6 million cubic meters per day of desalination capacity to its ongoing developments during the period.
Currently, the company has 32 projects in development that represent approximately 47 GW of electrical capacity and 2 million cubic meters of daily desalination capacity.
Saudi Arabia Public Investment Fund also holds a 44.1% stake in ACWA Power, positioning the company as one of the key players in Saudi Arabia’s strategy to expand and transform its energy infrastructure.
Source: AGBI ARABIAN GULF BUSINESS INSIGHT
Photo: Shutterstock
