A consortium that is developing Saudi Arabia’s largest solar project has reached financial close for the nearly $1 billion plant, and has secured the backing of state oil producer Saudi Aramco, according to Bloomberg.
According to the report, Aramco, through a unit called The Saudi Aramco Power Company (SAPCO, will hold a 30% stake in the Sudair solar project. ACWA and partner Water & Electricity Holding Co. will each own 35%. ACWA, itself 50% owned by the Saudi sovereign wealth fund, said it had reached financial close with lenders on the 1.5 gigawatt project.
Aramco will hold a 30% stake in the Sudair solar project, located between Riyadh and Al Majmaah in Saudi Arabia.
Many areas of Saudi Arabia receive over 3,000 hours of full sunlight per year, making the Kingdom an ideal place for solar power investment.
Additionally, Saudi Arabia burns considerably more crude oil directly for power generation than any other country, according to the U.S. Energy Information Agency. Although Saudi Arabia expects domestic energy consumption to fall by 1.5 million to 2 million barrels of oil equivalent per day by 2030 as a result of decisions taken in 2018 to hike gasoline and electricity prices, the use of oil for domestic power prevents the Kingdom from selling the commodity to international buyers.
With an investment value of SAR 3.4 billion (US$906 million), the Sudair project will be constructed in Sudair Industrial City and feature bifacial PV modules and trackers. Sudair Industrial City is located between Riyadh and Al Majmaah, 155 km from the Saudi capital.
The first phase of the project is expected to begin producing electricity during the second half of 2022.
According to Bloomberg, Aramco Chief Executive Officer Amin Nasser said last week the company is studying hydrogen production and export even as it invests to expand oil output capacity and sales.
