Saudi Arabia Signs Deals to Add 5,500 Megawatts of Solar Energy
In a major move towards enhancing renewable energy sources, Saudi Arabia has finalized three power purchase agreements to add 5,500 megawatts of solar energy to its grid.
The agreements were signed by the Saudi Power Procurement Co. with ACWA Power Co., Water & Electricity Holding Co. (Badeel), and Aramco Power, marking a significant step towards achieving the Kingdom’s goal of a 50 percent renewable energy mix by the end of the decade.
The National Renewable Energy Program overseen by the Ministry of Energy aims to reduce liquid fuel consumption and align with the objectives of Saudi Vision 2030.
The projects include Haden Solar PV and Al-Muwaih Solar PV in the Makkah region, each with a capacity of 2,000 MW, and Al-Khushaybi PV in Qassim Province with a total capacity of 1,500 MW.
Saudi Arabia plans to award contracts for new renewable energy projects starting in 2024, with a goal of reaching a capacity between 100 and 130 gigawatts by 2030, depending on electricity demand growth.
Currently, 21 projects totaling 19 GW have been awarded, with 4.1 GW operational, 8.2 GW under construction, and 7 GW in the final stages of financial closure.
Six additional projects with a combined capacity of 6.7 GW have been put out to bid in 2024, with plans to tender more capacities by year-end to achieve the target of 20 GW annually.
In May, SPPC signed agreements with a consortium led by Japan’s Marubeni Corp. for the Al-Ghat and Waad Al-Shamal wind power projects during the Saudi-Japan Vision 2030 Business Forum.