Saudi Arabia Advances Solar Energy with New Agreements
On Wednesday, the Saudi Power Procurement Company (SPPC) signed Power Purchase Agreements (PPA) for three significant solar energy projects. The agreements were made with a consortium that includes ACWA Power Company, the Water & Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and Aramco Power, a subsidiary of Saudi Aramco.
The signing ceremony was attended by Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz Al Saud.
These new solar projects have a combined capacity of 5,500 MW and are integral to the National Renewable Energy Program, which is overseen by the Ministry of Energy.
The specific projects are as follows:
- Haden Solar PV in Makkah Province, boasting a capacity of 2,000 MW with a Levelized Cost of Energy (LCOE) of 1.58762 cent/kWh
- Al-Muwaih Solar PV also in Makkah Province, featuring a capacity of 2,000 MW and an LCOE of 1.60852 cent/kWh
- Al-Khushaybi PV in Qassim Province, with a capacity of 1,500 MW and an LCOE of 1.67289 cent/kWh
Starting in 2024, Saudi Arabia plans to tender new renewable energy projects annually, aiming for a total capacity of 20 GW each year. The goal is to achieve between 100 to 130 GW by 2030, contingent on electricity demand growth.
Since the inception of the renewables program, 21 projects have been awarded, including the newly signed agreements, totaling 19 GW in capacity. Of these, seven projects with a combined capacity of 4.1 GW are already connected to the grid. Additionally, eight projects totaling 8.2 GW are currently under construction, and six projects totaling 7 GW are in the financial close stage.
Since the beginning of this year, six new renewable energy projects with a combined capacity of 6.7 GW have been tendered. Further capacities are slated to be tendered within the year to meet the 20 GW annual target.
The National Renewable Energy Program’s projects are crucial for achieving the Kingdom’s optimal energy mix and reducing the use of liquid fuels in power generation and other sectors. These efforts are part of the broader initiative to fulfill the objectives of Saudi Vision 2030.
