Saudi Arabia awards five 4.5 GW renewable energy projects at investments of over $2 billion

RIYADH (SPA)

Saudi Arabia on Monday awarded five new renewable energy projects, including a new project for electricity generation from wind energy and four new projects for electricity generation from solar energy.

The projects were awarded in the presence of Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Saudi Minister of Energy and Chairman of the Board of Directors of the Saudi Power Procurement Company.

The Saudi Press Agency said in a statement that the Dawadmi Wind Energy Project had achieved a new world record for the lowest cost of electricity generation from wind power.

Meanwhile, the Najran Solar Energy Project recorded the world’s second-lowest cost of electricity generation from solar energy, following the (Shuaiba 1) Project, one of the Kingdom’s projects that had previously set the global record for the lowest cost of electricity generation from solar energy at 1.04 US cents per kWh.

 The total capacity of the five projects amounts to 4,500 megawatts, with total investments exceeding 9 billion Saudi riyals ($2.4 billion). The project awards come within the framework of the sixth phase of the Saudi National Renewable Energy Programme, supervised by the Ministry of Energy.

Project Awards

-Dawadmi Wind IPP Plant, located in Riyadh Province, with a capacity of 1,500 MW, to a consortium comprising Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy Company Ltd., and Etihad Water and Electricity Company PJSC (EtihadWE). Levelised Cost of Energy (LCOE) of 1.33803 cent/kWh (5.01760 Halala/kWh), setting a new world record for the lowest LCOE of wind power generation.

-Najran Solar Energy Project, located in the Najran region, developed in partnership with Abu Dhabi Future Energy Company (Masdar). The project has a capacity of 1,400 MW and LCOE of 4.11307 halalas per kwh , equivalent to 1.09682 US cents per kwh. This represents the second-lowest new world record for the cost of electricity generation from solar energy, following the (Shuaiba 1) Project, which is also located in the Kingdom.

-Ad Darb Solar PV IPP Plant, located in Jazan Province, with a capacity of 600 MW, was awarded to Abu Dhabi Future Energy Company PJSC – Masdar, with an LCOE of 1.36070 cent/kWh (5.10262 Halala/kWh).

-Samtah Solar PV IPP Plant, located in Jazan Province, with a capacity of 600 MW, awarded to a consortium comprising Saudi Electricity Company (SEC), and EDF POWER SOLUTIONS INTERNATIONAL SAS, with an LCOE of 1.48678 cent/kWh (5.57544 Halala/kWh).

-Sufun Solar PV IPP Plant, located in Hail Province, with a capacity of 400 MW, awarded to a consortium comprising Al Jomaih Energy & Water Company (AEW) holding, and TotalEnergies Renewables SAS, with an LCOE of 1.50686 cent/kWh (5.65074 Halala/kWh).

Upon the signing of the round six projects, the total signed renewable capacity in Saudi Arabia will be 43.2 GW, with 12.3 GW already connected to the grid.