Cenomi Centers signs PPA with FAS Energy, Marubeni Corp.

Logo of Arabian Centres Co. (Cenomi Centers)

Arabian Centres Co. (Cenomi Centers) announced a partnership under power purchase agreements (PPA) with a consortium formed by FAS Energy and Marubeni Corporation, which will see photovoltaic (PV) panels reducing Cenomi Centers’ Scope 2 emissions across their sites.

The agreement is valid for 20 years, Cenomi Centers said in a statement to Tadawul, noting that it will pay for the power generated as per the contract terms.

In the first phase of the project, the PV panels will be installed for 20 years on the rooftops and carports in 13 malls of Cenomi Centers. The parties may also install the related EV charging infrastructure. The initial deployment is expected to accommodate a total capacity of approximately 52 megawatt (MW) and generate 93 gigawatt/hour (GW/h) per year.

The agreement is based on a “design-build-finance-operate-maintain” (DBFOM) model, with no upfront capital investments or any operational burdens to Cenomi Centers.

According to the company's initial estimates, the impact resulting from the cost reduction will begin to appear gradually from the first year from the date of operation. The amount of savings will be determined from time to time against the prevailing electricity price at a given time.

The installations will be rolled out in phases, beginning with Cenomi Centers’ sites in Riyadh in early 2024, before moving on to other shopping centers across the Kingdom. All sites are expected to be completed and operational by 2025.

The agreement consolidates Cenomi Centers’ position at the forefront of sustainable innovation in the Kingdom, the statement added.