Riyadh independent power plant achieves full commercial operation

Saudi Electricity Company is actively participating in the government’s efforts to facilitate the development of both Independent Power Producers (IPPs) and Independent Water and Power Producers (IWPP) in the Kingdom, said its President and CEO Ali Saleh Al-Barrak.
His comments came as Dhuruma Electricity Company (DEC) announced in a press release received here yesterday that he Riyadh PP11 Independent Power Plant (IPP) in Saudi Arabia achieved full commercial operation recently, announced.
Saudi Electricity Company (SEC) is the sole off-taker of the power sold by DEC.
PP11 is a gas-fired independent power project with a capacity of 1,729 MW, situated about 125 km west of Riyadh.
Dhuruma Electricity Company has a 50 percent participation in the venture.
The project is structured as a build-own-operate arrangement with SEC.
The sponsor consortium holding the other 50 percent of DEC consists of GDF SUEZ Group (20 percent), Aljomaih Holding Co. (15 percent) and Blue Horizon, a subsidiary of Japan’s Sojitz Corporation (15 percent).
Construction started in June 2010 with Hyundai Heavy Industries (HHI) as EPC contractor.
General Electric supplied the seven high efficiency gas turbines as well as the two steam turbines.
The project stayed well on track during the three years of construction: it provided over 600 MW early power in June 2012 and over a 1,000 MW during peak Ramadan hot summer months in the Kingdom, and completed commissioning in combined cycle configuration ahead of schedule.
Riyadh PP11 will be operated and maintained by Dhuruma O&M Company that is jointly owned by GDF SUEZ (80 percent) and Aljomaih Group (20 percent).
According to the press release, Ali Saleh Al-Barrak added: “The Saudi Electricity Company is committed to cope effectively with the increasing demand for electricity through structured plans and programs that define projects, as well as the technical and financial requirements and human needs. It further utilizes the performance indicators as mechanisms for managing its strategic orientation and organizational performance.”
He said: “Through its efforts, the company has succeeded in attaining concrete achievements in the development and reinforcement of the electrical system capacities in the Kingdom, in a manner that is in line with the Kingdom’s recent rapid economic growth.”
Al-Barrak said SEC has introduced long term (20 years) power purchase agreement with the IPPs. Through its own I(W)PPs and other programs, SEC is expecting a further addition of 24,500 MW generation capacity, which will raise the total installed capacity in the Kingdom to 95,000 MW by 2020.
Shankar Krishnamoorthy, CEO and president of GDF SUEZ Energy Middle East, Turkey and Africa said: “Over the years, GDF Suez has earned a reputation of being a reliable developer and operator of electricity and water facilities in Saudi Arabia. By bringing PP11 into operation on schedule, we have honored our commitment to the Saudi Electricity Company and we have sustained our reputation as a trusted partner. Our group owes this success to the close alignment and cooperation of its project partners, contractors and suppliers and we want to thank them for that.”
Ibrahim M. Aljomaih, vice chairman of Aljomaih Energy and Water Company, said: “Aljomaih Holdings Co., being the Saudi partner in the consortium, is very proud of this great accomplishment. The successful completion of a project of this size, safely and in such a remote location, is a tribute to the integrated work of the project team, their engineers, the EPC contractor and SEC who, apart from being the off-taker, were responsible for resolving many key interface issues with the Kingdom’s existing electrical networks.”
He added: “Providing vital power to the people of Saudi Arabia is one of Aljomaih’s main duties and corporate objectives. It goes without saying that the efforts of DEC, SEC, the EPC contractor, the O&M group, the equipment suppliers and the GDF SUEZ-Sojitz-Aljomaih Consortium were remarkable in achieving such a target. Completing a project of this magnitude safely, within budget and ahead of schedule is a model that should be followed by all in the Kingdom of Saudi Arabia, as well as in the GCC region. Our sincere thanks and gratitude go to all our partners for a job well done.”
Takeshi Yoshimura, executive officer of Sojitz Corporation, said: “Sojitz has been engaged in and has contributed to the development of the electricity sector through the sale of equipment in Saudi Arabia for more than 30 years.”
Yoshimura said: “We are very excited and honored with this great achievement, as PP11 is our first IPP in the Kingdom, as well as in the Middle East region. This could not have been realized without the mutual cooperation and strong commitment of all stakeholders and we would like to thank all of them.”
He added: “Our group remains strongly committed to the further development of the electricity sector in the Kingdom.”