A consortium led by Saudi Arabia’s ACWA Power recently signed power purchase agreements for seven new solar photovoltaic and wind projects with a total capacity of 15,000 MW and total investments of over SAR31 billion ($8.3 billion) under the National Renewable Energy Program (NREP), which the Ministry of Energy supervises.
The consortium includes the Water and Electricity Holding Company (Badeel), owned by the Public Investment Fund, and Aramco Power, owned by Saudi Aramco, with ACWA Power as the main developer.
Five solar plants and two wind projects underway
The projects include five photovoltaic solar plants in the cities of Aseer, Medina, Mecca and Riyadh, and two wind power projects in Riyadh. The solar projects include the Bisha Project in Saudi Arabia’s Aseer Region, with a capacity of 3,000 MW and a levelized cost of energy (LCOE) of 4.83708 halalas/kWh (1.2898 cents). Meanwhile, the Humaij Project in the Madinah Region has a capacity of 3,000 MW and an LCOE of 4.90682 halalas/kWh (1.30848 cents).
The deals also include the Khulis Project in the Makkah Region, with a capacity of 2,000 MW and an LCOE of 5.10439 halalas/kWh (1.36117 cents), and the Afif 1 Project in the Riyadh Region, with a capacity of 2,000 MW and an LCOE of 4.74736 halalas/kWh (1.26596 cents). Finally, the solar projects include the Afif 2 Project in the Riyadh Region, with a capacity of 2,000 MW and an LCOE of 4.72346 halalas/kWh (1.25959 cents).
The Saudi Power Procurement Company, with which the deals were signed, also inked deals for two Wind energy projects, including the Starah Project in Riyadh, with a capacity of 2,000 MW and an LCOE of 7.71422 halalas/kWh, and the Shaqra Project in the Riyadh Region, with a capacity of 1,000 MW and an LCOE of 6.99750 halalas/kWh.
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Largest clean energy capacity globally in a single phase
The signing of these agreements represents the largest capacity globally signed for renewable energy projects in a single phase. It confirms Saudi Arabia’s continued leadership in developing renewable energy infrastructure and achieving globally competitive costs of electricity production per kilowatt-hour, due to efficient financing and development models, as well as growing investor confidence in the Saudi investment environment.
The Saudi Power Procurement Company will be responsible for preparing feasibility studies, tendering electricity generation projects, and signing power purchase agreements with developer consortia. To date, the company has launched renewable electricity generation projects with a total capacity of 43,213 MW.
Of these, power purchase agreements have been signed for projects with a total capacity of 38,713 MW, while 10,213 MW have already been connected to the grid. The capacity connected to the grid is expected to reach 12,713 MW by the end of 2025, and 20,013 MW by the end of 2026.
Saudi Arabia is aiming to build up to 130 gigawatts of renewable capacity by 2030, it said last year.
