Residual Valuation of Rabigh IPP

IPA Energy + Water Economics supported one of the bidders for the Rabigh IPP, a 1.2GW oil-fired power project that will be awarded a 20 year Power Purchase Agreement (PPA) with the Saudi Electricity Company (SEC) under a Build-Own-Operate (BOO) arrangement. IPA developed an in-house power and desalination model to cover Western Saudi Arabia and delivered results at an interactive workshop in Dubai. IPA took this same opportunity to examine and rank the impact of different drivers of residual value. Since the potential availability of natural gas was found to have a significant impact, spent time assessing the gas resource and supply options for Saudi Arabia.