Saudi Arabia’s Al-Ghat and Wa’ad Alshamal Wind Projects Set Global Cost Records

Saudi Arabia has achieved new global benchmarks in low-cost wind energy generation through the Al-Ghat and Wa’ad Alshamal wind projects, according to Energy Minister Prince Abdulaziz bin Salman. The announcement was made during the Saudi-Japan Vision 2030 Business Forum held in Tokyo.

Under Round 4 of the National Renewable Energy Program, the Saudi Power Procurement Company signed power purchase agreements with a consortium led by MARUBENI Corporation for the 600 MW Al-Ghat Wind Project and the 500 MW Wa’ad Alshamal Wind Project.

The projects established record-low electricity production costs for wind energy globally. Al-Ghat achieved a tariff of 1.56558 cents per kWh, while Wa’ad Alshamal reached 1.70187 cents per kWh following a competitive public bidding process.

The projects are expected to supply electricity to nearly 257,000 homes annually and support Saudi Arabia’s target of generating 50 percent of its electricity from renewable sources by 2030 under the National Renewable Energy Program and Saudi Vision 2030.

Saudi Arabia is targeting 58.7 GW of renewable energy capacity by 2030, including around 40 GW from solar power, as part of broader efforts to diversify the economy, improve energy efficiency, and reduce carbon emissions.