The Saudi Power Procurement Company, the kingdom’s principal energy purchaser, recently concluded agreements for three new photovoltaic solar energy ventures. In an event attended by Prince Abdulaziz bin Salman, the Minister of Energy, the signings were conducted in collaboration with ACWA Power, Badeel – owned by the Public Investment Fund, and Aramco Energy, a subsidiary of Saudi Aramco.
The initiatives, which together boast a total capacity of 5,500 megawatts, are part of the national renewable energy program spearheaded by the Ministry of Energy.
Project details include:
- Hadn Project in the Mecca region
- Capacity: 2,000 megawatts
- Production cost: 1.58762 cents per kilowatt-hour
- Moyeh Project in the Mecca region
- Capacity: 2,000 megawatts
- Production cost: 1.60852 cents per kilowatt-hour
- Khushaibi Project in the Qassim region
- Capacity: 1,500 megawatts
- Production cost: 1.67289 cents per kilowatt-hour
Future Plans: The kingdom aims to launch annual projects with a capacity of 20 gigawatts starting from 2024, striving to achieve a target of 100 to 130 gigawatts by 2030. This aligns with the anticipated growth in electricity demand.
Progress of the National Renewable Energy Program: Since its inception, the program has awarded 21 renewable energy projects with capacities exceeding 19 gigawatts, including projects that have been connected to the grid, others under construction, and some in the financial closure phase.
Furthermore, six additional projects were launched in 2024, totaling 6.7 gigawatts, with plans to introduce more throughout the year to bolster renewable energy infrastructure and its contribution to the national energy mix in line with Vision 2030.
These initiatives form part of Saudi Arabia’s strategy to enhance environmental sustainability and achieve sustainable development by transitioning the energy system towards a cleaner and more efficient future.
