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Saudi Arabia Fast Tracks Renewable Energy Goals with 5.5 GW Solar PV Project

SPPC has finalised the power purchase agreements worth USD 3.3 billion (SAR 12.3 billion) for three photovoltaic projects with ACWA Power Company, Water and Electricity Holding Co., also known as Badeel and Aramco Power.

July 01, 2024. By News Bureau

Saudi Arabia is set to add 5.5 GW of solar power capacity with the aim to accelerate its renewable energy goals. The Saudi Power Procurement Company (SPPC) has signed three new power purchase agreements (PPAs) for solar PV projects as part of the National Renewable Energy Programme (NREP).

SPPC has finalised the power purchase agreements worth USD 3.3 billion (SAR 12.3 billion) for three photovoltaic projects with ACWA Power Company, Water and Electricity Holding Co., also known as Badeel and Aramco Power. The contract duration for all the three PPA is 25 years.
The 5.5 GW solar PV project includes:

The 2 GW Haden project in Makkah with a levelised cost of electricity (LCOE) of 1.58762 US cents per kilowatt-hour (kWh)
The 2 GW Muyah project in Makkah with a LCOE of 1.60852 US cents per kWH
The 1.5 GW Al-Khashibi project in Qassim with a LCOE of 1.67289 cents per kWH

All the three new power purchase agreements, signed by Saudi Arabia’s Minister of Energy Prince Abdulaziz bin Salman Al-Saud, are essential to the renewable energy initiative.

Under National Renewable Energy Programme, 21 renewable energy projects were tendered, collectively exceeding 19 GW capacity. Currently, there are seven solar PV projects, with a total capacity of 4.1 GW, are already connected to the grid while another eight solar power projects, with a combined capacity of 8.2 GW are under construction. Another six solar projects totalling 7 GW are in the financial closure stage. Additionally, six new solar PV projects with a total capacity of 6.7 GW have been put on bid launched since the beginning of 2024.

SPPC has been tasked to tender the capacities by launching additional projects to achieve the interim target of 20 GW of electricity from renewable energy.

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Middle East Market

Saudi Power Procurement Company

Power purchase agreement (PPA)

Solar power

Renewable Energy Goals