The largest US conglomerate said it expects to start shipping the gas turbines and related equipment next year. The contract's projected value also includes maintenance services.

SEC in June won a $1.47 billion loan to help finance construction of the plant, which is one of six it aims to build to add about 11,000 megawatts of capacity to the world's largest oil exporter's electric grid.

The new power plant, Riyadh PP11, will constitute 15 percent of the power generation capacity in Saudi Arabia’s central region.

According to SEC, Saudi Arabia’s demand for reliable electricity is increasing at a rate of 8 percent a year. The new project, Riyadh PP11, is located at Dhuruma, about 80 kilometers west of Riyadh, and will add nearly 1,730 megawatts of power to SEC’s grid. Saudi Arabia, which has an installed capacity of 44,000 megawatts, is expected to need about 70,000 megawatts of power by the year 2020.

"As the first gas turbine independent power plant for SEC, the Riyadh PP11 project reflects our strategy to engage the private sector in the development of new power plants and to adopt innovative energy technology to increase the efficiency of our power production," said Ali Saleh Al-Barrak, president and CEO of SEC. "Working with a global technology leader like GE on this key project will help us meet the need for additional power throughout the Kingdom. It also builds on the strong relationship between SEC and GE which spans over 40 years."

In addition to meeting the rising demand for power, Riyadh PP11 also is designed to address Saudi Arabia’s environmental needs. The plant will feature GE’s high efficiency, F technology, gas turbines and advanced emissions control with dry low NOx technology and will use natural gas, a cleaner burning fossil fuel, as its primary fuel.

Shipment of the equipment for Riyadh PP11 will begin in 2011. The first phase of the project, totaling 788 megawatts, is scheduled to enter commercial operation in mid 2012, while the second phase, totaling 941 megawatts, is scheduled to enter full operation by mid 2013.

GE also signed a Memorandum of Understanding (MOU) with Miahona, a subsidiary of the Arabian Company for Water and Power Development Ltd. (ACWA Holding) to support the Kingdom's goal for sustaining a reliable water supply and meet wastewater management requirements.

The water reuse market in Saudi Arabia is expected to be worth $3.4 billion between 2009 and 2016, making it the third largest water reuse market in the world. Saudi Arabia's advanced treated water reuse capacity is growing annually at a rate exceeding 30 percent and is expected to reach 2.2 million cubic meters per day by 2016 from its current level of 260,000 cubic meters per day.

Stephen R. Bolze, president and CEO of GE Power & Water, who attended the Water and Power Forum 2010 (SWPF) on Monday, said GE will add a training center at the site of the new GE Energy Manufacturing Center in Dammam as part of its knowledge-sharing commitment to Saudi Arabia. He said the new advanced training center will bring total investment to the center to about $100 million. “The training center will create over 500 new jobs in Saudi Arabia," Bolze said.
 
— With input from agencies