Saudi Arabia boosts energy transition with two power plants
Germany's Siemens Energy is to build the Kingdom's two largest power plants in Saudi Arabia using gas turbine technology. This comes against a backdrop of Riyadh's efforts to reduce its carbon footprint and support the transition to clean energy.
Siemens has announced an agreement with China International Energy Group to supply the gas turbines for Saudi Arabia's two power plants, including a 25-year maintenance contract worth around 1.5 billion dollars.
The planned power plants, Talaba 2 and Qassim 2, are among the largest and most efficient steam and gas turbine power plants in the world. According to the company's statement, Siemens HL-class gas turbines, along with steam turbines and generators, will generate approximately two thousand megawatts at each plant.
The two new plants are scheduled to go into permanent operation in 2027 as combined gas-steam power plants after being connected to the local grid via a simple cycle system in 2026.
According to Siemens, "the two new power plants will replace the two old ones, which rely on oil as a source of energy, reducing carbon dioxide emissions generated by power plants by approximately 60%," a move in line with the Arab nation's energy strategy.
Karim Amin, member of the board of directors and head of the gas sector at Siemens, said the two new power plants "will provide a reliable electricity supply and contribute to the sustainable development of the country".
Meanwhile, last October, the Saudi Electricity Company and ACWA Power were chosen to develop two independent production projects using combined cycle gas turbine technology: Taiba 1 and Al-Qassim 1, with a total capacity of 3.6 gigawatts.
Riyadh aims to reduce oil in the electricity production process from the current 39% to 25% by 2025.
Siemens has extensive experience in the Middle East region. In 2018 it inaugurated three power plants in Egypt that it built in cooperation with Orascom Construction and Elsewedy Electric. The construction cost of these plants, with a total output capacity of around 14.4 gigawatts, amounted to around 6 billion euros.
In addition to Egypt, the German company signed an agreement with Iraq last March in the gas sector.
Last February, Saudi Minister of Industry and Mineral Resources Bandar Al-Khorayef inaugurated the Siemens electrical equipment factory in the Oasis Cities in Jeddah.
The factory produces the latest medium-voltage electrical equipment, including control systems for substations, communication and protection panels.
These products are aimed at improving the supply of safe energy to many sectors such as oil, gas, infrastructure and petrochemicals.
According to data collected by Al-Arab, Saudi Arabia has more than 200 power generation stations throughout the country. These include 13 gas turbine-powered stations.
In addition, the Saudi Arabian State Electricity Company claims to have a network of high and ultra-high voltage power transmission lines with a length of 93,000 circular kilometres.
All these energy infrastructures follow the objectives set by the government related to the reduction of greenhouse gases and the transition to clean energy.
They are also an extension of the Ministry of Energy's efforts to achieve the goals of Vision 2030, an initiative that charts a new course for the future of the Arab nation based on economic diversification and energy transition.
In this regard, the Kingdom aims to achieve carbon neutrality by 2060 and, to achieve this, has adopted a strategy in which modern and highly efficient gas-fired power plants are central.