Qurayyah IPP, one of the most significant independent power projects in Saudi Arabia, stands as a symbol of the Kingdom’s progress toward reliable, efficient, and sustainable electricity generation. Located in the Eastern Province near Al Khobar, Qurayyah IPP (Independent Power Plant) represents a monumental leap in combined-cycle gas power technology. With a total generation capacity exceeding 3,900 megawatts, it supplies power to millions of homes and industries across the Kingdom, playing a vital role in meeting Saudi Arabia’s ever-growing energy demands.
Background and Development
The Qurayyah IPP was developed under a Build-Own-Operate (BOO) model, a structure that encourages private investment in public utilities while ensuring long-term operational accountability. The project was awarded in 2011 after a highly competitive bidding process managed by the Saudi Electricity Company (SEC). The winning consortium, led by ACWA Power, partnered with Samsung C&T Corporation, MENA Infrastructure Fund, and SEC to establish the Hajr Electricity Production Company—the special purpose vehicle that owns and operates the plant.
Construction officially began in 2011, with full commercial operations commencing in 2014. The total project cost was approximately 2.7 billion US dollars, making it one of the largest independent power projects in the world at the time of its commissioning.
Location and Strategic Importance
Situated on Saudi Arabia’s east coast near Al Khobar, the Qurayyah site was chosen for both its proximity to natural gas resources and its accessibility to major industrial and urban centres. This strategic location ensures efficient fuel supply, minimal transmission loss, and quick distribution across the national grid. The plant plays a key role in supporting the industrial hubs of Jubail and Dammam, which are central to the Kingdom’s economic growth.
Furthermore, the Qurayyah IPP represents a cornerstone of Saudi Arabia’s energy diversification plan. While oil has historically dominated the energy sector, projects like Qurayyah are part of a larger movement to shift toward cleaner and more efficient gas-fired power generation.
Technical Configuration
Qurayyah IPP is a combined-cycle gas turbine (CCGT) power plant, one of the most efficient forms of thermal power generation. The plant is composed of six identical blocks, each following a 2-2-1 configuration—meaning two gas turbines, two heat-recovery steam generators (HRSGs), and one steam turbine per block.
Each gas turbine is paired with an HRSG to capture exhaust heat, which is then used to generate steam for the steam turbines. This dual-cycle process allows the plant to achieve a thermal efficiency exceeding 52 percent, significantly higher than conventional simple-cycle power stations.
The primary fuel is natural gas, while diesel oil serves as a backup to ensure uninterrupted operation during fuel supply interruptions. The turbines were supplied by Siemens, utilising their SGT6-5000F gas turbines and SST6-4000 steam turbines, known for their durability and high-performance characteristics under harsh desert conditions.
Ownership Structure and Key Partners
Ownership of Qurayyah IPP is divided among several major stakeholders:
- Saudi Electricity Company (SEC) – 50 percent
- ACWA Power – approximately 17.5 percent
- Samsung C&T Corporation – around 17.5 percent
- MENA Infrastructure Fund – about 15 percent
The Engineering, Procurement, and Construction (EPC) contract was awarded to Samsung C&T Corporation, which managed the project’s design and implementation phases.
Operational responsibilities are handled by NOMAC (National Operations and Maintenance Company), a subsidiary of ACWA Power, in collaboration with Siemens for long-term service agreements.
This partnership model brings together the strengths of Saudi leadership, Korean engineering, and international financing—creating a globally benchmarked example of public-private partnership in the power sector.
Economic and National Impact
The Qurayyah IPP project has had profound economic implications for Saudi Arabia. It was one of the earliest examples of large-scale private sector participation in the Kingdom’s power generation industry. By adopting the BOO model, the government reduced its direct financial burden while promoting efficiency, innovation, and accountability through private management.
The project’s electricity tariff was reportedly 15 percent lower than the next competitive bid, marking a major cost reduction in power procurement. This not only provided immediate economic benefits but also set a precedent for future IPP contracts in Saudi Arabia.
In terms of employment, the plant created thousands of local jobs during construction and continues to employ Saudi engineers and technicians in its operational phase. The project has also contributed to the localisation of industrial expertise, supporting the broader objectives of Vision 2030 to enhance local workforce participation in technical sectors.
Operational Excellence and Environmental Considerations
Since its commissioning, Qurayyah IPP has been recognised for its operational reliability and environmental performance. Its combined-cycle design significantly reduces greenhouse-gas emissions per unit of electricity produced compared to traditional oil-fired power plants.
The project’s developers have implemented advanced emission-control systems and water-management processes to minimise environmental impact. Its efficiency means less fuel consumption for the same energy output, aligning with Saudi Arabia’s commitment to sustainability and energy conservation.
Additionally, the plant’s operation adheres to international standards for maintenance and safety, with continuous monitoring and predictive maintenance enabled by Siemens’ digital systems. This ensures maximum uptime and operational lifespan, extending the economic value of the plant over decades.
The Qurayyah IPP Expansion Project
In early 2025, an expansion phase for Qurayyah IPP was announced, introducing an additional 3,010 megawatts of combined-cycle generation capacity. The expansion project, led once again by ACWA Power in partnership with the Saudi Electricity Company, will be carbon capture-ready, preparing the plant for future integration with carbon-reduction technologies.
GE Vernova has been selected to supply five high-efficiency H-Class gas turbines—three 7HA.03 and two 7HA.02 models. These turbines represent one of the world’s most advanced natural-gas turbine technologies, capable of achieving efficiencies beyond 64 percent when integrated with next-generation HRSGs and steam cycles.
The expansion underscores Saudi Arabia’s dual strategy: maintaining energy security while transitioning to a lower-carbon economy. It also supports the national ambition to increase the share of gas-fired power generation while gradually integrating renewable sources such as solar and wind.
Financing and Project Model
One of the most noteworthy aspects of the Qurayyah IPP is its innovative financing structure. The project was backed by a mix of equity from shareholders and long-term debt provided by local and international banks. The financing model was structured under Islamic finance principles, using instruments like Ijara (leasing) and Murabaha (cost-plus financing).
This approach attracted both regional and global investors, demonstrating confidence in Saudi Arabia’s regulatory framework for independent power projects. It also provided a roadmap for future infrastructure investments across the Gulf region.
The project’s success has since inspired similar IPP ventures, including the Rabigh 3, Shoaiba 3, and Sakaka solar projects, marking a transition to diversified and sustainable energy solutions in the Kingdom.
Technological Significance
From a technological perspective, Qurayyah IPP remains a benchmark in combined-cycle engineering. Its modular design allows for flexible operation—each block can be operated independently based on grid demand, ensuring maximum efficiency even at partial loads.
Advanced control systems monitor real-time performance data across all units, enabling predictive maintenance and rapid response to grid fluctuations. The adoption of digital twin technology has further optimised performance and reduced downtime, while remote diagnostic systems allow Siemens and NOMAC engineers to identify potential faults before they escalate.
Such innovations make Qurayyah IPP not only one of the largest but also one of the smartest power plants in the region.
Role in Saudi Vision 2030
Under Saudi Vision 2030, the Kingdom aims to enhance energy efficiency, diversify its economy, and reduce its reliance on crude oil for electricity production. Qurayyah IPP directly supports these objectives by exemplifying the benefits of gas-based generation and public-private collaboration.
Its expansion, with carbon-capture-readiness, is aligned with the Saudi Green Initiative, which seeks to achieve net-zero emissions by 2060. The project demonstrates how traditional fossil-fuel infrastructure can evolve toward cleaner, more efficient, and technologically advanced models—bridging the gap between current energy demands and future sustainability goals.
Lessons and Global Recognition
The success of Qurayyah IPP has positioned it as a case study for infrastructure investors, engineers, and policymakers worldwide. It showcases the value of combining private capital, cutting-edge technology, and government support to deliver world-class energy infrastructure.
Internationally, the project has received recognition for its scale, cost-efficiency, and reliability. Engineering consultancies, financial institutions, and academic researchers often cite Qurayyah as an example of how emerging markets can deliver large-scale energy projects competitively and sustainably.
Conclusion
Qurayyah IPP stands as a beacon of modern energy innovation in Saudi Arabia. With its vast capacity, efficient combined-cycle technology, and strong private-public collaboration, it has redefined the standards for independent power production in the Middle East.
As the Kingdom continues its journey toward a diversified and sustainable energy future, Qurayyah IPP remains at the forefront—providing reliable electricity, supporting economic growth, and symbolising the transition from oil-dependency to a balanced, high-efficiency energy economy. Its upcoming expansion and carbon-capture readiness mark the next chapter in this remarkable story of engineering, innovation, and national transformation.