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The contract signing ceremony
Saudi Power Procurement Co. (SPPC) signed power purchase agreements (PPAs) for three new solar photovoltaic projects with ACWA Power Co. and Water & Electricity Holding Co. (Badeel), a wholly-owned subsidiary of the Public Investment Fund and Aramco Power with a total capacity of 5,500 megawatts (MW).
For more news and details on the projects
According to a Ministry of Energy statement today, June 26, these projects, with a total capacity of 5,500 megawatts, are part of the National Renewable Energy Program (NREP), overseen by the ministry. These projects include:
· The Haden project in Makkah, with a capacity of 2,000 megawatts, and a cost of electricity production of 1.58762 cents per kilowatt-hour (5.95356 halalas per kilowatt-hour).
· The Muyah project in Makkah, with a capacity of 2,000 megawatts, and a cost of electricity production of 1.60852 cents per kilowatt-hour (6.03194 halalas per kilowatt-hour).
· The Al-Khashibi project in Qassim, with a capacity of 1,500 megawatts, and a cost of electricity production of 1.67289 cents per kilowatt-hour (6.27334 halalas per kilowatt-hour).
It is noteworthy that starting from 2024, the Kingdom will annually launch projects to produce electricity from renewable energy, with a capacity of 20 gigawatts, aiming to reach between 100 and 130 gigawatts by 2030, depending on electricity demand growth.
Since the inception of the National Renewable Energy Program until now, 21 renewable energy projects have been awarded with a total capacity exceeding 19 gigawatts. Of these, 7 projects with a total capacity of 4.1 gigawatts have been connected to the grid, 8 projects with a total capacity of 8.2 gigawatts are under construction, and 6 projects with a total capacity of 7 gigawatts are in the financial closure stage.
In addition to these projects, 6 other projects with a total capacity of 6.7 gigawatts have been launched since the beginning of 2024 to date. The plan for this year also includes launching additional projects to achieve the interim target of launching projects with a capacity of 20 gigawatts of electricity from renewable energy during this year.
The projects under the National Renewable Energy Program aim to contribute to achieving the optimal energy mix for electricity production and displacing liquid fuels used in the electricity production sector and other sectors in the Kingdom, as part of the energy system's efforts to achieve the goals of Saudi Vision 2030.
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