Principal Buyer Signs Power Purchase Agreements for Seven New Renewable Energy Projects with a total Capacity of 15,000 MW
In the presence of HRH Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy and Chairman of the Board of Directors of Saudi Power Procurement Company (Principal Buyer), The Principal Buyer [AA1] [MA2] has signed Power Purchase Agreements (PPA) for seven new solar photovoltaic and wind projects with a total capacity of 15,000 MW and total investments of over 31 billion Saudi Riyals (approximately 8.3 billion USD) under the National Renewable Energy Program, which is supervised by the Ministry of Energy.
The agreements were signed between the Principal Buyer and a consortium led by ACWA Power Company, as the main developer, and comprising of the Water & Electricity Holding Company (Badeel), a wholly owned subsidiary of the Public Investment Fund (PIF), and Aramco Power, a fully-owned subsidiary of Saudi Aramco.
The solar projects are:
Bisha Solar PV, in Asir Province, at a capacity of 3,000 MW and an LCOE of 1.28989 cent/kWh (4.83708 Halala/kWh)
Humaij Solar PV, in Medina Province, at a capacity of 3,000 MW and an LCOE of 1.30848 cent/kWh (4.90682 Halala/kWh)
Khulis Solar PV, in Makkah Province, at a capacity of 2,000 MW and an LCOE of 1.36117 cent/kWh (5.10439 Halala/kWh)
Afif 1 Solar PV, in Riyadh Province, at a capacity of 2,000 MW and an LCOE of 1.26596 cent/kWh (4.74736 Halala/kWh)
Afif 2 Solar PV, in Riyadh Province, at a capacity of 2,000 MW and an LCOE of 1.25959 cent/kWh (4.72346 Halala/kWh)
The wind projects are:
Starah Wind, in Riyadh Province, at a capacity of 2,000 MW and an LCOE of 2.05712 cent/kWh (7.71422 Halala/kWh)
Shaqra Wind, in Riyadh Province, at a capacity of 1,000 MW and an LCOE of 1.86600 cent/kWh (6.99750 Halala/kWh)
The signing of Power Purchase Agreements at this scale all at once for projects that are among the world’s largest serves as a testament to the Kingdom’s leading position in developing renewable energy infrastructure. It also reaffirms the Kingdom's continued achievement of competitive Levelized Costs of Energy that are the lowest globally, a result attributed to the efficiency of the Kingdom’s financing and development models and the growing confidence in the Kingdom's investment environment.
The Principal Buyer is the entity responsible for predevelopment, tendering, and the subsequent offtake of energy from power generation projects in the Kingdom of Saudi Arabia. To date, (43,213) MW of renewable energy capacity has been tendered under NREP. Of this tendered capacity, Power Purchase Agreements have been signed for (38,713) MW, and (10,213) MW has already been connected to the grid. Grid-connected capacity is expected to reach (12,713) MW by the end of 2025, increasing further to (20,013) MW by the end of 2026.
For additional information on NREP Projects, visit: