Riyadh, Saudi Arabia, witnesses landmark agreements for 15 GW of solar and wind power, marking a significant stride in the Kingdom’s clean energy transition.
RIYADH, Saudi Arabia — The Saudi Power Procurement Company () signed Power Purchase Agreements (PPAs) for seven new renewable energy projects. These agreements, valued at over SAR 31 billion (approximately US$8.3 billion), will add 15,000 MW to the national grid under the National Renewable Energy Program (NREP).
The signing ceremony took place in the presence of Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy and Chairman of the Principal Buyer’s Board. This monumental effort underscores Saudi Arabia’s commitment to diversifying its energy mix and achieving its Vision 2030 goals.
The agreements were established with a consortium led by ACWA Power, a key developer in the region. Collaborating partners include the Water and Electricity Holding Company (Badeel), owned by the Public Investment Fund, and Aramco Power, a subsidiary of Saudi Aramco. This strategic partnership highlights robust investor confidence in the Kingdom’s energy sector.
The seven projects encompass both solar photovoltaic and wind energy. Five solar projects, located in Aseer, Madinah, Makkah, and Riyadh regions, will contribute 12,000 MW. These include the 3,000 MW Bisha and Humaij projects, the 2,000 MW Khulis project, and the 2,000 MW Afif 1 and Afif 2 projects.
Two wind energy projects in the Riyadh region, the 2,000 MW Starah and 1,000 MW Shaqra, will add another 3,000 MW. These projects boast globally competitive levelized costs of energy (LCOE), reflecting efficient financing and development models.
This initiative represents the largest single-phase capacity signing for renewable energy projects worldwide. The Principal Buyer continues to play a pivotal role in driving these advancements, overseeing feasibility studies, tendering projects, and securing purchase agreements.
Source: Saudi Press Agency (SPA)
