ACWA Power has been collaborating with the Saudi Electricity Company and the Korea Electric Power Corporation. Jointly, they’ve accomplished financial closure on two large-scale IPP projects in Saudi Arabia. The two projects, Rumah 1 and Nairyah 1, demonstrate an exceptional combined investment of approximately SR15 billion, or $4 billion. They’ll serve to shore up our nation’s increasingly fragile energy grid while creating tens of thousands of new, good-paying jobs.
In August 2025, we reached financial closure. This milestone is a huge step forward for renewable energy projects in the state. Along with a collective capacity of 3,600 megawatts (MW), these projects will play a pivotal role in the Kingdom’s energy production capabilities.
Project Specifications
Both Rumah 1 and Nairyah 1 are conceived as units that would be powered by renewable energies. To their credit, the plan does include a stout 1 gigawatt (GW) of photovoltaic (PV) capacity. That capacity will be key in fully realizing the potential of solar energy. In a first, up to 1.5 GW of wind energy capacity will be incorporated into the projects. This balancing act between solar and wind indicates the government’s focus on diversifying its energy mix, a far-sighted approach in the face of climate change.
Where these projects are located at is important, too. They are sited in these locations where conditions have been determined to be best for creating renewable energy. By leveraging local technologies, ACWA Power and its partners aspire to develop clean, renewable energy power resources that are economically viable, environmentally responsible and socially impactful.
Economic Impact and Job Creation
That $4 billion ambitious investment is likely to bring a transformational effect to the local and region economy. One of Rumah 1 and Nairyah 1’s primary objectives is generating technical employment in the community. They throw themselves into the fray, as advocates for and leaders of workforce development in the renewable energy sector. This is in line with Saudi Arabia’s larger overall strategy—Vision 2030—aimed at creating more local jobs and developing the economy.
Additionally, the projects promise to bring much-needed, new, real capacity onto the national grid, leading toward a more stable and secure supply of energy. Saudi Arabia’s efforts to shift away from an energy system heavily reliant on fossil fuels are ongoing and extensive. Getting all of these projects in the ground will be key to achieving these ambitious targets.
Future Prospects
ACWA Power, the Saudi Electricity Company, and the Korea Electric Power Corporation are coming together. Their collaboration underscores the Kingdom’s commitment to accelerating the development of renewable energy initiatives. Their financial closure is now complete. Next, we’ll take a closer look at the construction and operational phases of Rumah 1 and Nairyah 1.
Like all FERC approved projects, these are impressive technological advancements to the energy production assembly line. In addition, they reiterate the important place of international collaboration in achieving Saudi Arabia’s Vision 2030 objectives. Despite the challenges, stakeholders remain enthusiastic about the progress. They hope that Rumah 1 and Nairyah 1 will be models for future renewable energy projects across the region.