Saudi Arabia has announced that ACWA Power, the Saudi power generation and desalination company, has won the contract for the first utility scale solar power project in Saudi Arabia with a record-breaking tariff of 2.34 US-cents per kilowatt-hour, according to reports.
ACWA Power announced the win on its website on Tuesday.
“This plant is the first of what will be a series of procurement within the visionary and ambitious Saudi national renewables program aiming to produce 9.5 GW of renewable energy by 2023 as a first phase. The 25-year Power Purchase contract was awarded for ACWA Power at a new world record tariff of US Cents 2.3417/kWh (8.781 halalas/kWh),” the company said.
ACWA Power will build the new plant in Al Jouf, Saudi Arabia.
Awarding the contract to ACWA Power is in line with the Kingdom’s intent to build up local industries and content for a more diverse economy.
Located in Al Jouf in the northern part of Saudi Arabia, the Skaka plant will cost $302 million and will generate 300 MW.
“We are proud to have set yet another world record tariff for PV power, now at home and are humbled to be entrusted with the first utility scale renewable energy plant to be developed in the Kingdom, which will be the foundation of the visionary ambitious national program that seeks to maximize the utilization of renewable energy sources, as defined by the National Transition Plan 2020 and the objectives of the Saudi Vision 2030,” ACWA Chairman Mohammad Abdullah Abunayyan said.
In 2004, ACWA Holding and MADA Group formed a joint venture under the name of ACWA Power Projects, and later became ACWA Power in 2008. The company handles a range of power generation and desalinated water production plants currently with presence in 11 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions.
