Saudi Arabia has taken a significant step towards modernizing its energy sector with new agreements worth SR20 billion ($5.33 billion) between Alfanar Projects and Saudi Electricity Co. These deals aim to advance the Kingdom’s power modernization and sustainability initiatives.
Announced at the Energy Localization Forum by the Ministry of Energy, the agreements include the construction of the Middle East’s largest High-Voltage Direct Current Converter Station. This facility, developed alongside China Electric Power Equipment and Technology Co., is set to provide 7 gigawatts of power across the Central, Western, and Southern regions.
Additional projects encompass battery storage systems, smart distribution centers, and renewable energy integration, all designed to enhance grid reliability. These initiatives align with Saudi Arabia’s Vision 2030, which targets 50 percent of power from renewable sources by 2030, aiming for a total capacity of 130 GW, including 58.7 GW from solar and 40 GW from wind.
Amer Al-Ajmi, Alfanar Projects’ executive vice president, emphasized the company’s dedication to transformative projects: The confidence placed in us affirms our commitment to deliver and execute projects of this scale.
He highlighted Alfanar’s resources and expertise in building a sustainable energy infrastructure to support the Kingdom’s self-sufficiency and leadership in renewable energy.
The signing event was attended by prominent figures such as Saudi Energy Minister Prince Abdulaziz bin Salman and other key officials, including Khaled Al-Ghamdi, CEO of Saudi Electricity Co., and Sabah Al-Mutlaq, vice chairman of Alfanar Co.
Alfanar Projects, a Saudi-based company, focuses on developing sustainable energy solutions that drive economic growth and environmental objectives in the Kingdom and beyond. Recently, Saudi Electricity Co. reported a net profit increase to SR5.6 billion for the first nine months of 2024, with its power generation capacity rising to 56.9 GW.
