Saudi Power Procurement Co. Signs Power Purchase Agreements with Marubeni-led Consortium in Tokyo
In a significant move towards sustainable energy, the Saudi Power Procurement Co. has inked two power purchase agreements with a consortium led by Japan’s Marubeni Corporation in Tokyo. These agreements mark a pivotal moment in the fourth phase of Saudi Arabia’s National Renewable Energy Program, overseen by the Ministry of Energy.
Key Players Present at the Signing
The signing ceremony was graced by the presence of Prince Abdulaziz bin Salman Al Saud, Saudi Minister of Energy, and Japan’s Minister of Economy, Trade and Industry SAITO Ken. The agreements focus on the Al-Ghat wind power project, boasting a capacity of 600 MW, and the Waad Al-Shamal wind power project, with a capacity of 500 MW. These groundbreaking deals were finalized during the Saudi-Japan Vision 2030 Business Forum held in Japan.
Prince Abdulaziz’s Appreciation and Record-breaking Achievements
Expressing gratitude to King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud, Prince Abdulaziz commended the leadership for their unwavering support towards achieving the goals of Saudi Vision 2030 in the energy sector. He proudly announced that the Al-Ghat project has set a new world record for the lowest cost of electricity production from wind energy, at 1.56558 US cents per kilowatt-hour. The Waad Al-Shamal project also secured the second-best global record in this field, with a cost of 1.70187 US cents per kilowatt-hour.
Impact and Future Plans
The annual energy output from these projects will cater to the needs of 257,000 residential units, showcasing their significant contribution to enhancing energy efficiency in the Kingdom. These initiatives align with the National Renewable Energy Program’s objectives, aiming to leverage renewable energy sources across Saudi Arabia to reduce reliance on liquid fuels in electricity production. The ultimate goal is to achieve an optimal energy mix for electricity generation, with renewable sources projected to make up around 50% of the mix by 2030.