KEPCO inks major power deals in Saudi Arabia

Korea Electric Power Corporation (NYSE:KEP), one of the world’s leading energy providers, has finalized agreements for two major power projects in Saudi Arabia, marking a significant step in the company’s expansion within the Middle East.

According to a filing with the U.S. Securities and Exchange Commission (SEC), the contracts, confirmed on November 28, 2024, involve KEPCO and the Saudi Power Procurement Company (SPPC) for the development of the Rumah 1 and Nairyah 1 gas combined cycle power plants.

These projects are part of Saudi Arabia’s ongoing efforts to diversify its energy mix.

The agreements, which will run until May 31, 2053, include a power purchase agreement (PPA) and a project development agreement (PDA).

Total expected revenues from the projects are substantial, with the Rumah 1 plant anticipated to generate $4.915 billion and the Nairyah 1 plant projected at $5.002 billion.

KEPCO’s equity share in the projects amounts to $1.474 billion for Rumah 1 and $1.5 billion for Nairyah 1.

The partnership for the projects also includes ACWA Power, a prominent Saudi energy developer, and the Saudi Electricity Company (SEC), which will collaborate with KEPCO on the execution and development of both power plants.