Saudi Arabia's new energy landscape: the global energy competition behind US$1.6 billion orders
Recently, Siemens Energy announced that it will provide core equipment and long-term maintenance services to Saudi Arabia's two joint power plants, Rumah 2 and Nairyah 2, with a total order amount of US$1.6 billion. The general contractor for this cooperation is Harbin Electric Group International Company, and the two companies will jointly promote the construction of this super-large-scale energy project.
These two power stations are located in the western and central Saudi Arabia respectively. The installed capacity of a single station is as high as 1.8 GW. The total power generation capacity can meet the power consumption needs of about 1.5 million households. After completion, it will become one of the largest joint return power stations in the world. The project not only represents a major upgrade of Saudi Arabia's energy infrastructure, but also further strengthens the competitiveness of Chinese companies in the global energy market.
As the world's leading energy technology supplier, Siemens Energy will provide a complete set of advanced equipment this time. It is worth noting that the core equipment supplied this time will be manufactured by Siemens Energy's service center in Daman, Saudi Arabia. To enhance local production capacity, the center is being expanded to meet the development needs of the Saudi energy industry. This not only conforms to the Saudi government's policy to promote localized manufacturing, but also further consolidates Siemens Energy's market position in the region.
Members of the Executive Board of Siemens Energy said in a statement: "We are honored to cooperate with Harbin Electric Group to provide Saudi Arabia with the world's leading efficient gas power generation technology. Siemens Energy will continue to work with global partners to jointly promote the green and low-carbon transformation of the energy industry."
As the general contractor of this project, Harbin Electric Group International Company is not only responsible for engineering construction, but will also play a key role in equipment integration and project management. In recent years, the competitiveness of Chinese power equipment manufacturers in the international market has been significantly improved. Harbin Electric took such a large-scale overseas project this time, demonstrating the influence of "Made in China" in the construction of global energy infrastructure.
It is worth mentioning that Harbin Electric Group has continued to increase its overseas market layout in recent years. In the Saudi market alone, Harbin Electric has participated in a number of major energy projects, such as Riyadh Photovoltaic Power Station, Jizan Gas Engine Power Station, etc. This cooperation with Siemens Energy will undoubtedly further enhance Harbin Electric's influence in the Middle East energy market and lay the foundation for more international cooperation in the future.
The acquisition of this order further consolidates Siemens Energy's leading position in the Saudi independent power generator (IPP) market. Last year, Siemens Energy just provided core gas power generation technology for the joint return power stations of Taiba 2 and Qassim 2. The total installed capacity of the two power stations is close to 4 GW, providing important support for Saudi power supply.
Now, with the addition of Rumah 2 and Nairyah 2, Siemens Energy's market share in Saudi Arabia will further increase. It is worth noting that in the context of global energy transformation, Siemens Energy not only develops steadily in the Saudi market, but also accelerates the expansion of the application of renewable energy and efficient gas power generation technology around the world.
According to the plan, the Rumah 2 and Nairyah 2 power stations are expected to be put into operation and connected to the grid in 2027, and will be operated in a simple loop mode first, and then upgraded to the joint loop power generation mode one year later. The successful implementation of this project will not only help Saudi Arabia improve the security of energy supply, but also promote the development of the global energy structure in a more efficient and low-carbon direction.
For Chinese companies, the global energy market is entering a new round of change, and investment and cooperation opportunities in clean energy, efficient power generation, smart grids and other fields are increasing. Chinese companies represented by Harbin Electric are occupancy an increasingly important position in international energy projects with their technological accumulation, cost advantages and flexible market strategies.
In the future, if Chinese companies can further strengthen local cooperation, technological innovation and investment and financing capabilities, they will be expected to win more voice in the construction of global energy infrastructure. Saudi Arabia's $1.6 billion order is a microcosm of this trend.
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