Saudi Arabia awards $2.4bn renewable energy projects

Saudi Power Procurement Company (Principal Buyer) has awarded five major renewable energy projects - four solar and a wind - worth SAR9 billion ($2.4 billion) to consortiums of leading global players including French groups TotalEnergies and EDF, Korea Electric Power Corporation and Abu Dhabi Future Energy Company (Masdar). 

The agreements were signed in the presence of Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy and Chairman of the Board of Directors of the Principal Buyer, the entity responsible for conducting predevelopment studies, tendering power generation projects, and signing Power Purchase Agreements with project developers.

 The wind energy facility - Dawadmi Wind Energy Project - has achieved a new world record for the lowest cost of electricity generation from wind power. 

Meanwhile, the Najran Solar Energy Project recorded the world’s second-lowest cost of electricity generation from solar energy, following the (Shuaiba 1) Project, one of the Kingdom’s projects that had previously set the global record for the lowest cost of electricity generation from solar energy at 1.04 US cents per kWh.

Dawadmi Wind IPP Plant, located in Riyadh Province, with a capacity of 1,500 MW, to a consortium comprising Korea Electric Power Corporation (Kepco), Nesma Renewable Energy Company and Etihad Water and Electricity Company (EtihadWE), and has an LCOE of 1.33803 cent/kWh (5.01760 Halala/kWh), setting a new world record for the lowest LCOE of wind power generation.

The Najran Solar Energy Project, located in the Najran region, is being developed in partnership with Abu Dhabi Future Energy Company (Masdar). The project has a capacity of 1,400 MW and (LCOE) of 4.11307 halalas per kwh , equivalent to 1.09682 US cents per kwh. This represents the second-lowest new world record for the cost of electricity generation from solar energy, following the (Shuaiba 1) Project, which is also located in the Kingdom.

Ad Darb Solar PV IPP Plant, located in Jazan Province, with a capacity of 600 MW, was awarded to Abu Dhabi Future Energy Company PJSC – Masdar, and has an LCOE of 1.36070 cent/kWh (5.10262 Halala/kWh).

Samtah Solar PV IPP Plant, located in Jazan Province, with a capacity of 600 MW, was awarded to a consortium comprising Saudi Electricity Company (SEC), and EDF POWER SOLUTIONS INTERNATIONAL SAS, and has an LCOE of 1.48678 cent/kWh (5.57544 Halala/kWh).

As Sufun Solar PV IPP Plant, located in Hail Province, with a capacity of 400 MW, was awarded to a consortium comprising Al Jomaih Energy & Water Company (AEW) holding, and TotalEnergies Renewables SAS, and has an LCOE of 1.50686 cent/kWh (5.65074 Halala/kWh).

The awarding of these projects further reinforces the Kingdom of Saudi Arabia’s leading position in developing renewable energy projects reflecting the continued achievement of highly competitive Levelized Costs of Electricity – the lowest globally. This success is attributed to the efficiency of the Kingdom’s financing and development models and the growing confidence in its investment environment.

SPPC said by the year-end, the total renewable energy generation capacity tendered will reach 64 GW. Upon the signing of the round six projects, the total signed Renewable capacity will be 43.2 GW, with 12.3 GW being already connected to the grid.