The Saudi Power Procurement Company signed power purchase agreements for solar projects with a combined capacity of 5.5GW. The projects include the Haden solar PV plant (2GW), the Al-Muwaih Solar PV plant (2GW) in the Mecca Province, and the Al-Khushaybi PV project (1.5GW) in the Qassim Province.
A consortium of 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 signed Power Purchase Agreements with the Saudi Power Procurement Company to complete projects that will have a combined capacity of 5.5 GW.
According to ACWA Power, the three contracts are worth $3.28bn in total and have a term of 25 years. The announcement of the three deals comes only a few months after ACWA Power secured financing for the construction of three large-scale solar projects in the Kingdom with a combined capacity of 4.55 GW and an aggregate investment cost of USD 3.4 billion.
Writing for Solar Quarter, Pooja Chandak reports that:
“Starting in 2024, Saudi Arabia plans to tender new renewable energy projects annually, aiming for a total capacity of 20 GW per year. The objective is to achieve a cumulative capacity of between 100 to 130 GW by 2030, depending on electricity demand growth.
Since the inception of the renewables program, 21 projects have been awarded, totaling 19 GW. This includes the newly signed projects. Of these, 7 projects with a total capacity of 4.1 GW are now connected to the grid, 8 projects totaling 8.2 GW are under construction, and 6 projects with a total capacity of 7 GW are in the financial close stage.
Moreover, since the beginning of 2024, six new renewable energy projects have been tendered, adding up to a total capacity of 6.7 GW. Additional capacities are expected to be tendered throughout the year to meet the 20 GW annual target.”
The three projects are:
- Haden Solar PV: Located in Makkah Province, this project has a total capacity of 2,000 MW with a Levelized Cost of Electricity (LCOE) of 1.58762 cent/kWh (5.95356 Halala/kWh).
- Al-Muwaih Solar PV: Also in Makkah Province, this project boasts a capacity of 2,000 MW with an LCOE of 1.60852 cent/kWh (6.03194 Halala/kWh).
- Al-Khushaybi PV: Situated in Qassim Province, this project has a capacity of 1,500 MW and an LCOE of 1.67289 cent/kWh (6.27334 Halala/kWh).
