The Saudi Power Procurement Company (SPPC) has announced the shortlisted consortiums for four major solar energy projects under the fifth phase of the National Renewable Energy Program (NREP). With a total investment of SAR 8 billion ($2.13 billion), the projects are part of Saudi Arabia’s broader strategy to diversify its energy mix and reduce reliance on fossil fuels.
The four solar projects, which have a combined capacity of 3,700 megawatts (MW), are expected to play a key role in helping the Kingdom meet its ambitious renewable energy targets. They include:
- Al-Sadawi Solar Photovoltaic (PV) Project – 2,000 MW
- Al-Masa’a Solar PV Project – 1,000 MW
- Al-Henakiyah 2 Solar PV Project – 400 MW
- Rabigh 2 Solar PV Project – 300 MW
The projects are the latest steps in Saudi Arabia’s plan to generate 50% of its electricity from renewable energy sources by 2030, in line with its Vision 2030 strategy.
The NREP, overseen by the Ministry of Energy, aims to accelerate the country’s transition to cleaner energy while meeting the growing domestic energy demand.
The SPPC launched the Request for Proposals (RFP) for the projects on February 8, 2024. Six bids were submitted for each project in August, with all bids evaluated for compliance with technical and commercial standards. Once the winners are announced, they will sign a 25-year Power Purchase Agreement (PPA) with the SPPC, operating under a build-own-operate model.
In the fifth phase of the NREP, solar projects such as these are set to provide low-cost, clean energy for the Kingdom. The largest of the projects, the Al-Sadawi Solar PV Project, will generate 2,000 MW of energy, contributing to Saudi Arabia’s decarbonization efforts.
The Rabigh 2 Solar PV Project will be built on land in the Rabigh Industrial City, overseen by the Saudi Authority for Industrial Cities and Technology Zones (MODON).
The announcement comes at a time when Saudi Arabia is ramping up its renewable energy investments. It follows the launch of the Request for Qualification (RfQ) for the sixth round of the NREP last month.
This round includes 4.5 GW of solar and wind projects and is part of the Kingdom’s ongoing efforts to transition to renewable energy. The projects in this round include the Dawadmi Wind IPP (1.5 GW) and four additional solar projects spread across various regions of the country.
Saudi Arabia’s Vision 2030 agenda places renewable energy at the heart of the Kingdom’s economic and environmental transformation. By shifting towards solar and wind energy, the country aims to reduce its carbon footprint and establish itself as a leader in the global renewable energy market.
The country has already awarded projects exceeding 19 gigawatts (GW) of capacity through various rounds of tenders under the NREP.
The focus on renewable energy is part of Saudi Arabia’s long-term goal to generate 100-130 GW of renewable capacity by 2030.
Earlier this year, the SPPC said that it plans to issue annual tenders for new renewable projects totaling 20 GW per year.
It has signed power purchase agreements (PPAs) for three major solar projects—Haden (2 GW), Muwayh (2 GW), and Al Khushaybi (1.5 GW)—and two wind projects with a combined capacity of 1.1 GW.
The agreements set a world record for the lowest price for wind energy, at $15.65 per megawatt-hour (MWh), positioning Saudi Arabia as a key player in the global renewables market.
In 2022, the Kingdom inaugurated its first utility-scale solar power plant, the Sakaka Solar Plant, with a capacity of 300 MW, developed by ACWA Power.
Industry analysts have praised the Kingdom’s efforts, noting that its growing renewable energy capacity will have a significant impact on the region’s energy landscape.
For more details on the National Renewable Energy Program and ongoing projects, the public can visit the program’s website at www.powersaudiarabia.com.sa.
