In the presence of HRH Minister of Energy, Prince Abdulaziz bin Salman, Saudi Arabia’s Ministry of Energy announces the award of Ar Rass and Saad Solar PV Projects with a total capacity of 1000 MW.
The Saudi Power Procurement Company (SPPC), the principal buyer, signed all the projects’ related agreements including the Power Purchase Agreements (PPA’s) with the winning consortia.
The first PPA signed was for the 700MW Ar Rass Solar PV IPP with Ar Rass Solar Energy Company (owned by ACWA Power as Managing and Technical member, SPIC and WEHC as consortium members). The project is valued SAR 1.7 billion and located in Al Qassim region in the Kingdom of Saudi Arabia, with an LCOE of 5.62 HH/kWh.
The second PPA signed was for the 300MW Saad Solar PV IPP with a consortium led by Jinko Power (HK) Company Limited as a Managing and Technical member, Jinko Power Middle East Holding Co. Ltd and Jinko Power Dhafra Holding Co. Ltd as consortium members. The project is valued around SAR 800 Million SAR and located in Saad within Riyadh region in the Kingdom of Saudi Arabia, with an LCOE of 5.56 HH/kWh.
On this occasion, HRH Prince Abdulaziz announced that the energy ecosystem, in its endeavor to reach the optimal energy mix, aims to release additional renewable energy projects with a total capacity of around 15,000 MW in 2022 and 2023.
In a statement, HRH noted the support of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and his wise guidance, which is always in the interest of the country and its citizens.
In addition, HRH Prince Abdulaziz bin Salman valued the support of HRH Prince Mohammed bin Salman, Crown Prince, Deputy Prime Minister and Minister of Defense, the crucial role he plays in enabling the energy sector, and his directives which raised the level of ambitions. He explained that these projects are a practical implementation of Saudi Vision 2030 on the ground. These landmark projects, HRH added, contribute greatly to achieving the optimal energy mix and displacing liquid fuel with renewables and gas in electricity generation in the Kingdom.
HRH Prince Abdulaziz said that the award of these projects represents another successful milestone to deliver the National Renewable Energy Program targets and is a testament to the commitment of the Kingdom to reduce energy related emissions while building a holistic and results-oriented Circular Carbon Economy. They also are practical steps towards achieving a number of strategic Saudi Vision 2030 goals, for the energy ecosystem in general and for the electricity sector in particular.
HRH Minister of Energy added that harnessing renewable energy is an essential part of the endeavor to reach the optimal energy mix used in power production, which aims to have the share of each gas and renewables at 50% by 2030, displacing around one million barrel equivalents of liquid fuel per day used in electricity production, desalination and other sectors.
It is noteworthy that completing these projects as well as other projects and connecting them to the national grid will contribute to promoting the Kingdom’s capabilities in power production to meet the national needs, increase the reliability of the power grid, support the Kingdom’s ambitious plans to become a leader in the production and exportation of renewables-produced electricity. They also advance the localization of the manufacturing and development of the components to produce solar and wind energy and enable the national talent working in the sector.
In addition, the two projects will supply enough energy to power over 180,000 households, while avoiding over 1.75 Million tons of carbon emissions per year.
The Ministry of Energy tenders renewable energy projects based on Independent Power Producer (IPP) scheme, supported by 25-year-long power purchase agreements with the Saudi Power Purchasing Company.
