In one of the largest capacity globally signed for renewable energy projects in a single phase, Saudi Power Procurement Company has signed Power Purchase Agreements (PPA) for 15GW from seven new solar photovoltaic and wind projects at a total investment of over SAR 31 billion (US$8.3 billion).
The agreements were made under the National Renewable Energy Program (NREP), which is supervised by the Saudi Arabian Ministry of Energy.
Saudi Arabia signs 15GW renewable energy deal
The involved parties included ACWA Power as the main developer, in partnership with the Water and Electricity Holding Company (Badeel), which is owned by the Public Investment Fund, and Aramco Power, owned by Saudi Aramco.
These agreements confirm the Kingdom’s continued efforts in developing renewable energy infrastructure and achieving globally competitive costs of electricity production per kilowatt-hour.
Photovoltaic solar projects include, the Bisha Project in Aseer region, with a capacity of 3,000MW and a levelised cost of energy (LCOE) of US$0.01289/kWh; and another 3,000MW from the Humaij Project in Madinah region with an LCOE of US$0.049/kWh.
Khulis Project in Makkah region, Afif 1 Project in Riyadh region, and the Afif 2 Project in Riyadh Region will provide a capacity of 2,000MW with an LCOE ranging from US$0.051/kWh to US$0.0723/kWh.
Wind energy projects include the Starah Project in Riyadh region, with a capacity of 2,000MW and an LCOE of US$0.0205/kWh, and the Shaqra Project, also in Riyadh region, with a capacity of 1,000 MW and an LCOE of US$0.0186/kWh.
Saudi Power Procurement Company is responsible for preparing feasibility studies, tendering electricity generation projects, and signing power purchase agreements with developer consortia.
To date, the company has launched renewable electricity generation projects with a total capacity of 43,213MW. Of these, power purchase agreements have been signed for projects with a total capacity of 38,713MW, while 10,213MW have already been connected to the grid.
The capacity connected to the grid is expected to reach 12,713MW by the end of 2025, and 20,013MW by the end of 2026.
