Saudi Arabia has awarded renewable energy contracts worth more than 9 billion Saudi riyals ($2.4 billion) amid its push to boost sustainable capacity generation while keeping generation costs low.
The deals were awarded by Saudi Power Procurement Company and cover five projects − four for solar and one for wind − with a combined capacity of 4,500 megawatts, the Saudi Press Agency said on Tuesday.
The announcement was made on the sidelines of the Future Investment Initiative summit in Riyadh.
The Najran Solar Energy Project will be developed with Abu Dhabi's Masdar and has a capacity of 1,400MW and a levelised cost of energy of 1.09682 US cents per kilowatt-hour – which SPPC said is the second-lowest globally for solar energy, after the kingdom's Shuaiba 1 plant.
Masdar will also be developing the Ad Darb solar plant in Jazan province, with a capacity of 600MW and an LCOE of 1.36070 US cents.
In a separate statement, Masdar chief executive Mohamed Al Ramahi said the Najran and Ad Darb projects mark a "significant expansion" to its Saudi portfolio.
These projects will "contribute to the kingdom's sustainable economic growth", he said.
The Samtah solar plant in Jazan province was awarded to a consortium between Saudi Electricity Company and France's EDF Power Solutions. It has a capacity of 600MW and an LCOE of 1.48678 cents.
The 400MW Sufun solar plant in Hail province was given to a consortium comprising Al Jomaih Energy and Water Company and France's TotalEnergies Renewables. It has an LCOE of 1.50686 cents.
The Dawadmi wind energy project in Riyadh, meanwhile, was awarded to a group comprised of Korea Electric Power Corporation, Jeddah-based Nesma Renewable Energy Company and Ajman's Etihad Water and Electricity Company.
The 1,500MW project has an LCOE of 1.33803 cents, which SPPC says is the lowest for wind power generation.
The awards highlight “the efficiency of the kingdom’s financing and development models and the growing confidence in its investment environment”, the SPA report said.
Saudi Arabia continues to boost its renewable energy sector as it shifts away from fossil fuels. The industry is also part of the kingdom's Vision 2030 economic programme, which aims to attract more investments and help international companies set up their operations in the Arab world's largest economy.
Renewable energy generation in the Middle East is forecast to grow by about 14 per cent per year from now until 2027, with its share of the overall energy mix rising from 5 per cent to 7 per cent, according to the International Energy Agency.
