Saudi Arabia Advances Renewable Goals With 5,500 MW Solar Energy Projects

In the presence of His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy, the Saudi Power Procurement Company (SPPC) has signed Power Purchase Agreements (PPA) for three new solar photovoltaic projects. These agreements were made with a consortium including ACWA Power Company, the Water & Electricity Holding Company (Badeel), and Aramco Power.

The projects are part of the National Renewable Energy Program, supervised by the Ministry of Energy. The three solar projects include Haden Solar PV in Makkah Province with a capacity of 2,000 MW and an LCOE of 1.58762 cent/kWh (5.95356 Halala/kWh), Al-Muwaih Solar PV also in Makkah Province with a capacity of 2,000 MW and an LCOE of 1.60852 cent/kWh (6.03194 Halala/kWh), and Al-Khushaybi PV in Qassim Province with a capacity of 1,500 MW and an LCOE of 1.67289 cent/kWh (6.27334 Halala/kWh).

Starting in 2024, Saudi Arabia will annually tender new renewable energy projects totaling 20 GW to reach between 100 to 130 GW by 2030, depending on electricity demand growth. Since the renewables program began, 21 projects have been awarded with a total capacity of 19 GW.

Of these awarded projects, seven with a total capacity of 4.1 GW are now connected to the grid. Additionally, eight projects with a total capacity of 8.2 GW are under construction, while six projects totaling 7 GW are at the financial close stage.

Since early 2024, six new renewable energy projects have been tendered with a combined capacity of 6.7 GW. More capacities are planned to be tendered within this year to meet the annual target of tendering 20 GW.

The National Renewable Energy Program aims to achieve Saudi Arabia's optimal energy mix targets and reduce liquid fuel usage in power generation and other sectors as part of efforts towards Saudi Vision objectives.

The newly signed solar projects have a combined capacity of 5,500 MW and are expected to contribute significantly to these goals.

With inputs from SPA