Saudi Power Procurement signs Power Purchase Agreements for 3 new solar energy projects with capacity of 4,550 MW

The Saudi Power Procurement Company (SPPC) signed Power Purchase Agreements (PPA) for three new solar photovoltaic projects under the National Renewable Energy Program supervised by the Ministry of Energy.

The agreements were signed with a consortium of ACWA Power Company and the Water & Electricity Holding Company (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF).

 The three projects are “Ar Rass2”, with a capacity of 2,000 MW and LCOE of 1.697 Cent/kWh; “Saad 2”, with a capacity of 1,125 MW and LCOE of 1.794 Cent/kWh; and, “Al Kahfa”, with a capacity of 1,425 MW and LCOE of 1.769 Cent/kWh. The projects are expected to power around 750 thousand residential units annually from renewables.

 The execution of these projects is an extension of the energy ecosystem’s efforts towards realizing Vision 2030’s objectives, achieving the optimal energy mix, and displacing liquid fuels in the Kingdom’s power sector. The program makes use of vast lands to harness renewable energy sources and increase the share of renewables in the energy mix to around 50% by 2030.