SPPC Signs PPA for 5,500 MW Solar Projects In Saudi Arabia With ACWA Power, Badeel, And Aramco Power

In a significant move towards bolstering its renewable energy sector, the Saudi Power Procurement Company (SPPC) has signed Power Purchase Agreements (PPA) for three new solar photovoltaic projects. The signing ceremony, held in the presence of His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz Al-Saud, Minister of Energy, featured a consortium of ACWA Power Company, the Water & Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and Aramco Power, a subsidiary of Saudi Aramco. These projects, with a combined capacity of 5,500 MW, are integral to the National Renewable Energy Program, overseen by the Ministry of Energy.

The three solar projects include:

• Haden Solar PV: Located in Makkah Province, this project has a total capacity of 2,000 MW with a Levelized Cost of Electricity (LCOE) of 1.58762 cent/kWh (5.95356 Halala/kWh).
• Al-Muwaih Solar PV: Also in Makkah Province, this project boasts a capacity of 2,000 MW with an LCOE of 1.60852 cent/kWh (6.03194 Halala/kWh).
• Al-Khushaybi PV: Situated in Qassim Province, this project has a capacity of 1,500 MW and an LCOE of 1.67289 cent/kWh (6.27334 Halala/kWh).

Starting in 2024, Saudi Arabia plans to tender new renewable energy projects annually, aiming for a total capacity of 20 GW per year. The objective is to achieve a cumulative capacity of between 100 to 130 GW by 2030, depending on electricity demand growth.

Since the inception of the renewables program, 21 projects have been awarded, totaling 19 GW. This includes the newly signed projects. Of these, 7 projects with a total capacity of 4.1 GW are now connected to the grid, 8 projects totaling 8.2 GW are under construction, and 6 projects with a total capacity of 7 GW are in the financial close stage.

Moreover, since the beginning of 2024, six new renewable energy projects have been tendered, adding up to a total capacity of 6.7 GW. Additional capacities are expected to be tendered throughout the year to meet the 20 GW annual target.

The National Renewable Energy Program aims to optimize Saudi Arabia’s energy mix and reduce the use of liquid fuels in power generation and other sectors, aligning with the Kingdom’s Vision 2030 objectives. These projects represent a crucial step towards achieving a sustainable and diversified energy future for Saudi Arabia.