In a significant advancement for renewable energy, Saudi Arabia has finalized Power Purchase Agreements (PPAs) for seven new solar and wind projects, boasting a combined capacity of 15,000 megawatts (MW) and investments surpassing SAR 31 billion (approximately USD 8.3 billion). These agreements were formalized in the presence of His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy and Chairman of the Board of Directors of the Saudi Power Procurement Company (Principal Buyer).
The Principal Buyer has entered into agreements with a consortium led by ACWA Power as the main developer, alongside Badeel a wholly owned subsidiary of the Public Investment Fund (PIF) and Aramco Power, a subsidiary of Saudi Aramco. These initiatives are part of the National Renewable Energy Program (NREP), overseen by the Ministry of Energy.
Project Breakdown:
Solar PV Projects:
– Bisha Solar PV (Asir Province): 3,000 MW | LCOE: 1.28989 cent/kWh (4.83708 Halala/kWh)
– Humaij Solar PV (Medina Province): 3,000 MW | LCOE: 1.30848 cent/kWh (4.90682 Halala/kWh)
– Khulis Solar PV (Makkah Province): 2,000 MW | LCOE: 1.36117 cent/kWh (5.10439 Halala/kWh)
– Afif 1 Solar PV (Riyadh Province): 2,000 MW | LCOE: 1.26596 cent/kWh (4.74736 Halala/kWh)
– Afif 2 Solar PV (Riyadh Province): 2,000 MW | LCOE: 1.25959 cent/kWh (4.72346 Halala/kWh)
Wind Projects:
– Starah Wind (Riyadh Province): 2,000 MW | LCOE: 2.05712 cent/kWh (7.71422 Halala/kWh)
– Shaqra Wind (Riyadh Province): 1,000 MW | LCOE: 1.86600 cent/kWh (6.99750 Halala/kWh)
The simultaneous signing of these major PPAs represents one of the largest rounds of renewable energy projects globally, reinforcing the Kingdom’s role as a pivotal player in sustainable energy development. These projects showcase Saudi Arabia’s capability to consistently achieve world-leading Levelized Costs of Energy (LCOE), attributed to its competitive financing models and strong investor confidence.
The Saudi Power Procurement Company, acting as the Kingdom’s principal energy offtaker, is responsible for the predevelopment, tendering, and energy procurement from generation projects. To date, under the NREP, 43,213 MW of renewable capacity has been tendered. Out of this, 38,713 MW have signed PPAs, with 10,213 MW already connected to the grid. The grid-connected capacity is projected to increase to 12,713 MW by the end of 2025 and 20,013 MW by the end of 2026.
This noteworthy development aligns with Saudi Arabia’s Vision 2030 objectives and emphasizes the Kingdom’s rapid transition to a cleaner and more diversified energy mix.
Source: ACWA Power
