Saudi Arabia has finalized power purchase agreements (PPAs) for three solar photovoltaic projects totaling 1,700 megawatts as part of its National Renewable Energy Program (NREP).
The Saudi Power Procurement Company (SPPC), which oversees competitive procurement for renewable energy projects, confirmed the agreements under the program’s fifth round.
The projects include the Al-Masaa, Al-Henakiyah 2, and Rabigh 2 independent power plants (IPPs), each awarded to leading international and local consortiums following competitive bidding.
Project details and developers:
- Al-Masaa IPP (1,000 MW)
Located in the Hail province, the Al-Masaa project was awarded to a consortium led by China’s SPIC Huanghe Hydropower Development Co. Ltd and France’s EDF Renouvelables S.A. The consortium secured the project with a record-low tariff of 5.13228 halalas per kilowatt-hour (approximately 1.37 US cents/kWh). - Al-Henakiyah 2 IPP (400 MW)
This project, situated in Madinah province, was also awarded to the SPIC-EDF consortium at a tariff of 5.68618 halalas/kWh (1.52 US cents/kWh). - Rabigh 2 IPP (300 MW)
The 300 MW facility in Makkah province was awarded to a consortium comprising Saudi Arabia’s Al Jomaih Energy and Water Company and TotalEnergies Renewables. The winning bid offered a tariff of 6.68019 halalas/kWh (1.78 US cents/kWh).
The projects form part of Saudi Arabia’s broader commitment to produce 50% of its electricity from renewable sources by 2030, displacing traditional liquid fuels in the power sector.
The National Renewable Energy Program, spearheaded by the Ministry of Energy, has become a pivotal instrument in the Kingdom’s transition towards a sustainable and diversified energy future.
Analysts have lauded the competitive tariffs achieved in the latest round, underscoring Saudi Arabia’s attractiveness as a renewable energy hub due to its favorable solar conditions and ambitious policy framework.
“This milestone reinforces Saudi Arabia’s leadership in advancing utility-scale renewable projects in the region,” the SPPC said in a statement.
The agreements further bolster the Kingdom’s ability to meet growing domestic energy demand while reducing its carbon footprint. With solar energy playing a key role in achieving energy security, the projects are aligned with the global push for clean energy solutions.
The fifth round of the NREP also shortlisted bids for an additional 3,700 MW of capacity, indicating sustained momentum in Saudi Arabia’s renewable energy drive.
