TAQA and AlBawani Secure $4B Funding for Saudi Power Plants
Abu Dhabi’s National Energy Company (TAQA) and Japan’s AlBawani Capital have secured $4 billion (AED 14.7 billion) to build two new power plants in Saudi Arabia.
The projects
The plants, named Rumah 2 and Al Nairyah, will use combined-cycle gas turbine technology to generate about 3.6 gigawatts (GW) of electricity.
Saudi Arabia’s Ministry of Energy, through the Saudi Power Procurement Company (SPPC), has already signed 25-year agreements with TAQA, JERA, and AlBawani to buy the electricity from these projects.
Financing
The projects will be mostly financed through loans, with over 80% coming from senior debt. The lending banks include Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, Arab Petroleum Investments Corp, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of China, and First Abu Dhabi Bank.
Ownership of the project companies is split between TAQA (49%), JERA (31%), and AlBawani (20%). Construction is already underway.
What TAQA says
TAQA CEO Farid Al Awlaqi said the company will use its global experience to support Saudi Arabia’s energy goals. He added that the plants will use high-efficiency turbines, showing TAQA’s commitment to growth and reducing carbon emissions.
Contractors and operations
The main construction contracts were awarded to Harbin Electric International and China Tiesiju Civil Engineering, while Siemens Energy will supply the turbines and other key equipment. Operation and maintenance will be managed by new companies under the same ownership structure.
Why it matters
TAQA, ranked 11th on Forbes Middle East’s Top 100 Listed Companies 2025, said the plants will help meet Saudi Arabia’s rising electricity needs while supporting its plan to balance gas and renewable energy for a reliable and sustainable power supply.
Published: 4th September 2025
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