Amman, April 9 (Petra) -- Director General of the National Electric Power Company (NEPCO) Sufian Batayneh said Thursday that the seventh Independent Power Producer project (IPP7), recently approved by the Cabinet, constitutes a key strategic investment to reinforce the Kingdom’s electricity system and ensure long-term supply reliability.
In a press statement, Batayneh said the combined-cycle power plant will have a generation capacity of 700 megawatts and is expected to become operational between 2027 and 2028, meeting around 10 percent of the Kingdom’s electricity demand at that time.
He noted that the project forms part of NEPCO’s continuously updated expansion strategy, developed in coordination with sector partners to meet rising energy demand with optimal efficiency and cost-effectiveness, while enhancing supply security and sustainability.
Batayneh added that the plant will deploy advanced combined-cycle technology, offering high thermal efficiency and reduced emissions in line with the Kingdom’s transition toward cleaner energy sources.
The project will be implemented under a build-own-operate (BOO) model, with the private sector responsible for development and operation, while NEPCO will purchase the generated electricity under a 25-year power purchase agreement.
He said the project is aligned with the Economic Modernization Vision, particularly in advancing energy sector investments and strengthening public-private partnerships.
The Cabinet approved the Ministry of Energy and Mineral Resources to proceed with the implementation of the IPP7 project in partnership with Etihad Development Company, a wholly owned subsidiary of Etihad Water and Electricity Company of the United Arab Emirates, and endorsed the related agreements ahead of signing.
The project is part of NEPCO’s broader infrastructure expansion plan to meet future electricity demand through the deployment of advanced generation technologies. It also represents a new model of private sector participation, involving the establishment of a public shareholding company in which the government will hold a 49 percent stake, with the Social Security Investment Fund eligible to participate.
Batayneh said the project will support the national transmission system and contribute to enhancing integration across key strategic infrastructure projects.
//Petra// AJ
