Second Electricity Production Unit Adds 340 MWh to KSA Grid 36 Days of Ahead of Schedule

Published July 11th, 2010 - 12:54 GMT

 Dr. Madani A. Alagi, Chairman of Shuqaiq Water and Electricity Company (SqWEC) announced on Sunday 11/07/2010 the completion the commercial operation date (COD2) of the second electricity production unit of with capacity of 340 MWh 36 days before the planned deadline. Three months ago the COD1 of the first electricity production unit, also with a capacity of 340 MWh, was achieved. This brings the plant production of electricity to-date to a total of 680 MWh after the addition of the second unit to the production capacity. The third and final electricity production unit will come into operation by the end of 2010 bring the plant to full production with a capacity of 850 MWh. The new capacity will be used to meet the growing demand for electricity in Asir and Jizan.

ACWA Power International is the lead developer of the project has overseen the construction work since it began in March 2007. This is the fourth of its seven IWPP/IPP/IWSP projects in the Kingdom. Once all the projects are completed a total full production capacity of 2.3 million cubic meters per day and 6,200 MWh of electricity will be available. The seven projects are spread across the eastern, western and southern regions of the kingdom.  Paddy Padmanathan , ACWA Power’s CEO  stated "The success of the Shuqaiq project in achieving COD2, the full production of the second electricity unit before the agreed date by 36 days, is a live example of the success of public private partnerships and their ability to meet the growing demand of power and water in the Kingdom. The capacity it will add will be a huge addition to the power grid in the Southern Region of Saudi Arabia”.

Shuqaiq Water and Electricity Company was established as a closed Joint Stock Company where the Saudi Public Investment Fund (PIF) owns 32% and the Saudi Electricity Company (SEC) owns 8% with the remaining share belonging to ACWA Power International, Gulf Investment Corporation and Mitsubishi Corp. The project is structured on a concession or utility outsourcing contract model and is the third IWPP project in the Kingdom. This project was initiated by the Water and Electricity Company in line with the Supreme Economic Council decree No. 5/23 for the year 1423 (2002) which identified the regulatory framework for private sector participation in these types of projects.


Eng. Abdulaziz Al-Mahdi Executive Managing Officer of SqWEC stated, "We look forward to the project reaching full commercial production by the end of 2010 with 850 MWh of electricity and 212,000 cubic meters per day of desalinated water thus achieving its objectives of providing power and water to the public. This achievement will validate the success of public private partnerships in vital industries, creating job opportunities, opening new investment channels for local funds and attracting foreign investment. "



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