Energy Deals: Saudi Arabia Secures SR20 Billion Agreements to Advance Power Modernization

In a significant move to bolster Saudi Arabia’s power sector and sustainability goals, Alfanar Projects has signed energy deals worth SR20 billion ($5.33 billion) with Saudi Electricity Co. The agreements, announced during the Energy Localization Forum hosted by the Ministry of Energy, aim to accelerate the Kingdom’s power modernization and renewable energy efforts.

Key projects include the construction of the Middle East’s largest High-Voltage Direct Current (HVDC) Converter Station. Developed in collaboration with China Electric Power Equipment and Technology Co., this facility will transmit 7 gigawatts of power across the Central, Western, and Southern regions, according to an official press release.

The agreements also encompass initiatives for battery storage systems, smart distribution centers, and renewable energy integration, aligning with Saudi Vision 2030’s ambitious targets of energy self-sufficiency and sustainability.

Saudi Arabia aims to source 50 percent of its energy from renewables by 2030, targeting a total capacity of 130 GW. This includes 58.7 GW from solar energy and 40 GW from wind, representing the Gulf Cooperation Council’s most ambitious renewable energy plan.

Amer Al-Ajmi, Executive Vice President of Sales and Marketing at Alfanar Projects, expressed gratitude for the Ministry of Energy’s trust. “This confidence affirms our commitment to delivering transformative projects of this scale. At Alfanar Projects, we leverage robust resources, technical expertise, and a highly skilled national workforce to build sustainable energy infrastructure,” he stated.

The signing ceremony was attended by prominent officials, including Saudi Energy Minister Prince Abdulaziz bin Salman, Minister of State Hamad bin Mohammed Al-Sheikh, and Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef. Representing the partnering organizations were Khaled Al-Ghamdi, CEO of Saudi Electricity Co., and Sabah Al-Mutlaq, Vice Chairman of Alfanar Co. and Managing Director of Alfanar Projects.

Earlier this month, Saudi Electricity Co. reported a net profit of SR5.6 billion for the first nine months of 2024, reflecting a 21.7 percent increase from SR4.6 billion in the same period last year. The company’s power generation capacity also saw a 1.4 percent rise, reaching 56.9 GW in directly owned capacity.

Alfanar Projects, a Saudi-based leader in sustainable energy initiatives, continues to support the Kingdom’s economic and environmental goals with groundbreaking developments both locally and globally.