A consortium comprising Abu Dhabi Future Energy Company (Masdar), one of the world’s leading renewable energy enterprises, EDF Renewables, a global prominent green hydrogen firm, and Saudi’s Nesma Renewable Energy (NRE) won a bid for the construction of $1.1 billion ma 1.1GW solar plant in Saudi Arabia.
A mega solar power plant: Among the world’s largest
UAE’s Masdar announced that the Saudi Power Procurement Company has awarded the project to their consortium. The consortium presented the most cost-competitive offer of $16.84 per megawatt hour.
The primary purchaser of renewable energy projects in the Kingdom is the Saudi Power Procurement Company. The company aims to foster economic diversification by supporting clean energy initiatives.
Upon commencement of operations, the project is projected to provide electricity to over 190,000 homes each year. Furthermore, it will effectively mitigate over 1.8 million tonnes of carbon dioxide emissions annually.
A $1 billion project
According to Masdar, the Henakiyah solar power plant project, with an estimated cost of $1 billion, is anticipated to achieve financial closure in early 2024. The project is scheduled to be connected to the grid in 2025.
During the construction phase, at least 19 percent of the equipment, materials, and services will be sourced from Saudi companies. Additionally, Saudi nationals will comprise 50 percent of the project’s workforce during the initial five years of operation, as stated by the UAE company.
Situated in the Saudi’s province Madinah, the Henakiyah solar power plant is forecasted to become one of the world’s largest solar power plants in a single location, as per a reliable source. Under a 25-year agreement with the Saudi Power Procurement Company, the consoritum will develop, operate, and own the plant.
Read more: Masdar, Malaysia ink deal to advance renewable energy projects
National Renewable Energy Program
The Henakiyah Floating Solar Power Project is a component of the fourth phase of the National Renewable Energy Program (NREP), overseen by the Ministry of Energy of Saudi Arabia. NREP is a pivotal initiative aligned with Saudi Vision 2030, designed to harness the full potential of renewable energy in the Kingdom.
This program charts a strategic roadmap for diversifying the country’s energy sources and seeks to reduce reliance on liquid fuels in the electricity production sector. Its overarching goal is to maximize the utilization of renewable energy in Saudi Arabia.
Purchasing wind power
Masdar recently finalized a range of energy contracts and agreements, including a significant agreement between Emirates Water and Electricity Company (EWEC) and Masdar. The objective of this agreement is to procure electricity generated from a pioneering wind power program at the service facility level within the UAE.
This momentous agreement was announced in conjunction with the launch of the wind energy program by Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi.
As part of this strategic collaboration, EWEC will acquire the electricity generated from the UAE’s groundbreaking wind power program specifically designed for service utility purposes.
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