Arab News, Thu, Jun 27, 2024 | Dhu al-Hijjah 21, 1445
Saudi Arabia advances renewable goals with 5,500 MW solar PPAs
Saudi Arabia:
Saudi Arabia is set to add 5,500 megawatts of solar energy following the signing
of three deals by its principal buyer, advancing its strategy to enhance
renewable sources.
The Saudi Power Procurement Co. finalized power
purchase agreements for three new solar photovoltaic projects with ACWA Power
Co., Water & Electricity Holding Co., also known as Badeel, a wholly-owned
subsidiary of the Public Investment Fund, and Aramco Power.
This comes as Saudi Arabia’s National Renewable
Energy Program aims to achieve the Kingdom’s target energy mix of 50 percent
renewables by the end of this decade, supporting efforts to reduce liquid fuel
consumption and aligning with Saudi Vision 2030 objectives for the energy
sector.
The PPAs, signed by Saudi Minister of Energy
Prince Abdulaziz bin Salman Al-Saud, are integral to the NREP supervised by the
ministry.
The solar projects include Haden Solar PV and
Al-Muwaih Solar PV, both located in the Makkah region, each with a capacity of
2,000 MW. The third project, Al-Khushaybi PV in Qassim Province, has a total
capacity of 1,500 MW.
Saudi Arabia plans to begin awarding contracts for
new renewable energy projects in 2024, aiming for a maximum capacity of 20
gigawatts. By 2030, the goal is to achieve a capacity between 100 and 130
gigawatts, contingent on the growth of electricity demand, the ministry said.
Since the inception of the renewables program, a
total of 21 projects have been awarded, amounting to 19 GW in capacity.
Currently, seven projects totaling 4.1 GW are
operational and connected to the grid, while eight projects with a total
capacity of 8.2 GW are under construction. Additionally, six projects totaling 7
GW are in the final stages of financial closure.
Furthermore, six additional renewable energy
projects with a combined capacity of 6.7 GW have been put out to bid since the
beginning of 2024.
Further capacities are planned to be tendered
before year-end to achieve the target of tendering 20 GW annually.
In May, SPPC signed two PPAs with a consortium led
by Japan’s Marubeni Corp. in Tokyo. These agreements were part of the fourth
phase of Saudi Arabia’s NREP, overseen by the Ministry of Energy.
The agreements pertain to the Al-Ghat wind power
project, with a capacity of 600 MW, and the Waad Al-Shamal wind power project,
with a capacity of 500 MW. These agreements were signed during the Saudi-Japan
Vision 2030 Business Forum held in Japan.