It is reported that ACWA Power has announced the financial close of the Rabigh 2 Combined Cycle Gas Turbine (CCGT) Independent Power Project (IPP) expansion in western Saudi Arabia. The financial close date is reported as October 1, 2026, and the plant capacity is 2,313.5 MW. A total of 14 financial institutions are reported to have taken part, with financing of about SAR 9.69 billion (approximately US$2.58 billion).
The project is reported to be the Rabigh 2 IPP expansion, covering the development, construction, ownership and operation of a CCGT power plant in Rabigh. The project company is reported to be Al Morjan Two Electricity Company, in which ACWA Power is said to hold an effective 40% stake.
The project is understood to have been formalized when ACWA Power and the Saudi Power Procurement Company (SPPC) signed a Power Purchase Agreement (PPA) on April 20, 2026. The agreement was reported at about SAR 11.5 billion (approximately US$3.07 billion) with a term of 31 years. The financial close is said to have come about five and a half months after the PPA signing.
The plant is reported to be designed to be ready for the later installation of Carbon Capture Units. The Engineering, Procurement and Construction (EPC) contractor, the gas turbine supplier and the commercial operation date (COD) are reported as not disclosed in the confirmed materials.
Capacity is 2,313.5 MW using CCGT technology. Financing is reported at about SAR 9.69 billion (approximately US$2.58 billion). Fourteen financial institutions are reported to be involved; local banks are said to include Alinma Bank, Riyad Bank, Saudi Awwal Bank and Saudi National Bank. Regional lenders are reported to include Abu Dhabi Commercial Bank, Boubyan Bank and Commercial Bank of Dubai, and international institutions are said to include HSBC, ICBC, Industrial Bank, Standard Chartered and Sumitomo Mitsui Trust.
The PPA is reported at about SAR 11.5 billion (approximately US$3.07 billion) with a 31-year term. ACWA Power’s effective shareholding is reported at 40%.
Saudi Arabia is reported to be pursuing CCGT-based independent power projects in succession to meet rising electricity demand, and thirteen bidders were recently reported to have been qualified for the third-phase CCGT IPP program. The Rabigh 2 expansion is described as an example of a financing structure combining private capital with domestic and international financial institutions within this gas-fired power expansion.
Financial close on a large CCGT project is generally regarded as the key step from PPA signing to the start of construction, and participation by both domestic and international commercial banks is said to indicate funding stability. Project finance backed by long-term PPAs is reported to be a widely used structure for power plant investment. A design that anticipates carbon capture units is described as part of a trend of reflecting decarbonization options at the planning stage of gas-fired plants. In terms of the supply chain, demand for gas turbines and EPC services is expected by industry observers to become concrete at the subsequent award stage.
Attention is reported to be on which companies are selected as the EPC contractor and gas turbine supplier. The disclosure of the construction start date and commercial operation schedule is also said to be of interest. Whether the installation of carbon capture units is turned into a concrete plan is another point to watch. In addition, the progress of Saudi Arabia’s third-phase CCGT IPP tender and whether similar financing structures appear in later projects are reported as matters of interest.