POWERCHINA held a signing ceremony for the 2,400 MW Rabigh 2 Independent Power Plant (IPP) Expansion Project in Riyadh, Saudi Arabia, on October 1, 2026. The project is expected to expand the Kingdom’s electricity generation capacity, improve grid reliability and support Saudi Vision 2030. Located in Rabigh, the gas-fired combined-cycle power project is designed to address rising electricity demand associated with industrial expansion, economic development and population growth.
The Rabigh 2 project scope includes design, engineering, procurement, equipment erection, construction, commissioning and performance testing of the power plant. The facility will incorporate high-efficiency power generation technologies capable of operating in both simple-cycle and combined-cycle modes. This flexibility is intended to help the plant respond to varying electricity demand and provide operational adaptability as the Kingdom’s power requirements grow.
Peng Gang, President of POWERCHINA MENA, highlighted the company’s experience in power engineering and its established track record in Saudi Arabia during the signing ceremony. He reaffirmed POWERCHINA’s commitment to working closely with project partners to ensure safe, efficient and timely execution while maintaining high standards of engineering and construction quality.
The Rabigh 2 project is expected to strengthen Saudi Arabia’s national electricity grid by improving power supply stability and reliability. Its flexible generation capabilities are also expected to support the integration of increasing renewable energy capacity into the national power system. This could help address grid stability challenges associated with variable renewable energy generation as the country expands its renewable energy capacity.
The development forms part of Saudi Arabia’s broader efforts to modernise energy infrastructure, enhance energy security and support long-term economic diversification under Vision 2030. By adding substantial generation capacity, the project is intended to help meet the Kingdom’s growing electricity requirements. Upon completion, the 2,400 MW power plant is expected to contribute to electricity supply while reinforcing Saudi Arabia’s position as a major regional energy and investment hub.