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Saudi Arabia has announced an expansion project for the Rabigh 2 Power Plant, which includes adding an additional production capacity of 2,314 megawatts at a cost of approximately 9.69 billion riyals. The full operation is expected to commence in the second quarter of 2029. This expansion reflects Saudi Arabia’s strategic approach to meet the ongoing growth in electricity demand, which increased from 70.6 gigawatts in 2023 to 77.1 gigawatts in 2025—a rise of more than 9% over two years. The project embodies the kingdom’s strategy to achieve a balanced energy mix that combines renewable sources and natural gas to cater to various sectors, especially with rising demands from data centers, water desalination, and industries. The expansion aims to enable the power grid to accommodate the growing future demand, alongside ongoing solar and wind projects and the transition of power plants to operate on gas to strengthen the national energy mix.
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