Saudi Arabia plans to close all oil power plants by 2030 and replace them with gas combined cycle power plants and renewable energy such as solar and wind. To promote this ambitious Vision 2030, companies like Korea Electric Power Corporation or Doosan, and Korean equipment companies are needed.
Mothana Alodhaib, the Minister for Business Development at ACWA Power, said this at a press conference held at ACWA Power headquarters in Riyadh, Saudi Arabia, on the 19th (local time), noting, "Korean corporations are attractive partners."
Alodhaib stated that successful bidding, construction, and stable operation for the next 25 years require Korean corporations that have successfully executed international projects, including Korea Electric Power Corporation and Doosan. He added that Korean corporations possess extensive knowledge and experience in technical and investment aspects and also provide financial procurement.
ACWA Power is the largest private energy corporation in Saudi Arabia, supplying 15% (15GW) of Saudi Arabia's electricity (100GW). It currently focuses on power generation and desalination businesses. With 44.16% equity owned by the sovereign wealth funds (PIF), it has a financial structure as stable as a state-owned enterprise.
ACWA Power is accelerating the expansion of gas combined cycle power and renewable energy businesses in line with Saudi Arabia's Vision 2030. The Saudi government plans to supply 50% of its electricity with gas combined cycle and the remaining half with renewable energy by 2030.
ACWA Power is increasing cooperation with Korean corporations. In 2009, ACWA Power formed a consortium with Korea Electric Power Corporation to start the Rabigh power plant project, and in 2020, a Memorandum of Understanding (MOU) on green hydrogen-ammonia was signed with KEPCO and POSCO. Last year, a consortium was formed with KEPCO to secure the Rumaila and Nairiyah projects.
Minister Alodhaib noted that the "heat recovery steam generators (HRSG) and steam turbines for the Taiba1 and Qassim1 combined cycle power plant projects were supplied by Korean corporations." It was added that in the Rumaila1 and Nairiyah1 gas combined cycle power plant projects, KEPCO participated with equity and Doosan supplied steam turbines, with Korea Eximbank joining as the financial partner.
He stated, "Saudi Arabia has a clear plan to ensure reliability and sustainability while pursuing the ambitious Saudi Vision 2030," and added, "Our corporation alone cannot achieve this; partners like Korean corporations are necessary."
ACWA Power believes there is room to expand collaboration with Korean corporations as Saudi Arabia strengthens its renewable energy projects. Saudi Arabia is building a green hydrogen project in the NEOM region and expects to begin green ammonia production in 2026.
He mentioned that "ACWA Power is involved in all technology fields, including gas combined cycle power, renewable energy, and green hydrogen," and is "holding regular meetings with KEPCO regarding green hydrogen and ammonia to explore opportunities."
Minister Alodhaib emphasized the stability and economic viability of conducting solar and wind business in Saudi Arabia, noting additional business opportunities. He said, "Saudi Arabia's power demand is highest at noon during the summer, aligning nearly perfectly with solar supply." He added that due to the vast land and abundant solar resources in Saudi Arabia, the world's lowest power rate (1 cent/kWh) has been achieved, with similar rates for wind.
He also introduced that "Saudi Arabia is promoting large-scale battery storage projects to maximize the use of renewable energy even at night." Saudi Arabia is currently bidding on four large battery storage projects.