Saudi Principal Buyer has announced that it has signed power purchase agreements with a consortium led by Saudi utility major Acwa Power for seven new renewable energy projects worth a total of SAR31 billion ($8.3 billion).
These deals fall within the National Renewable Energy Program, supervised by the Saudi Ministry of Energy. On completion, the projects will boast a total capacity of 15,000MW.
Saudi Principal Buyer said the consortium will have Acwa Power as the main developer, with partners - Water and Electricity Holding Company (Badeel), owned by the Saudi sovereign fund PIF, and Aramco Power, owned by global oil giant Saudi Aramco.
The signing ceremony was attended by Minister of Energy and the Board of Directors of the Principal Buyer Prince Abdulaziz bin Salman bin Abdulaziz Al Saud.
Saudi Principal Buyer said of these seven renewable energy projects, five are photovoltaic (PV) solar projects:
*Bisha Project in Aseer Region, with a capacity of 3,000MW and a levelized cost of energy (LCOE) of 4.83708 halalas/kWh (1.28989 US cents).
*Humaij Project in Madinah Region, with a capacity of 3,000MW and an LCOE of 4.90682 halalas/kWh (1.30848 US cents).
*Khulis Project in Makkah Region, with a capacity of 2,000MW and an LCOE of 5.10439 halalas/kWh (1.36117 US cents).
*Afif 1 Project in Riyadh Region, with a capacity of 2,000MW and an LCOE of 4.74736 halalas/kWh (1.26596 US cents).
*Afif 2 Project in Riyadh Region, with a capacity of 2,000MW and an LCOE of 4.72346 halalas/kWh (1.25959 US cents).
The two wind energy projects are:
*Starah Project in Riyadh Region, with a capacity of 2,000MW and an LCOE of 7.71422 halalas/kWh (2.05712 US cents).
*Shaqra Project in Riyadh Region, with a capacity of 1,000MW and an LCOE of 6.99750 halalas/kWh (1.86600 US cents).
Saudi Principal Buyer said the signing of these agreements represents the largest capacity globally signed for renewable energy projects in a single phase.
It confirms the kingdom's continued leadership in developing renewable energy infrastructure and achieving globally competitive costs of electricity production per kilowatt-hour, due to efficient financing and development models, as well as growing investor confidence in the Saudi investment environment.
Acwa Power CEO Marco Arcelli said: "This landmark agreement represents a significant milestone in Saudi Arabia's strategic vision for a more resilient and more sustainable energy landscape, underscoring the nation’s steadfast commitment to achieving its ambitious renewable energy targets."
"As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future," he stated.
Badeel Acting CEO Sultan AlNabulsi said: "The agreement is a continuation of our efforts, as an anchor sponsor under PIF to achieve its commitments in the renewable energy sector across Saudi Arabia, and contributing to unlocking the potential of this strategic sector across the entire supply chain."
"This investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy, and increasing the country’s investment attractiveness," he noted.
Aramco Senior Vice President (New Energies) Waleed Al Saif said: "We are delighted to expand our footprint in the renewables business through our subsidiary, Sapco. In partnership with Acwa Power and Badeel, we are helping build Saudi Arabia’s renewable energy infrastructure.
"In doing so, we are laying the foundations for a more sustainable power network. Through such investments, we aim to unlock additional value from Saudi Arabia’s abundant natural resources and grow Aramco’s New Energies portfolio," stated Al Saif.
"We look forward to bringing these projects online with our partners and remain convinced that all forms of energy have a role to play in a pragmatic energy transition," he added.
Saudi Principal Buyer has a major role in these projects as the key entity 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 43,213 MW. Of these, power purchase agreements have been signed for projects with a total capacity of 38,713 MW, while 10,213 MW have already been connected to the grid.
By the year end, the total capacity of grid connection is set to hit 12,713 MW and further soar to 20,013MW by 2026-end.-TradeArabia News Service
