Principal Buyer awards 4.5 GW of renewable energy projects valued at over SAR 9 bn

The Saudi Power Procurement Company (Principal Buyer) awarded a wind project and four solar projects under phase six of the National Renewable Energy Program (NREP), with a combined capacity of 4.5 GW and over SAR 9 bn (c.USD 2.4 bn) in investments, according to a statement from the Energy Ministry. The batch includes some of the world’s lowest wind and solar levelized cost of energy on record — ranging from SAR 0.0411 / kWh (c.USD 0.0109 / kWh) to SAR 0.0565 / kWh (c.USD 0.0150 / kWh).

The 1.5 GW Al Dawadmi wind project in Riyadh was awarded to a consortium of homegrown Nesma Renewable Energy, Korea Electric Power Corporation, and UAE’s Etihad Water & Electricity — marking a new record low for wind generation cost at SAR 0.0517.

Masdar snatched some 2 GW of solar: The 1.4 GW Najran solar project was awarded to UAE’s Masdar, marking the world’s second-lowest cost for solar after Al Shuaiba’s USD 0.0104 / kWh. Masdar also took the 600 MW Al Darb solar project in Jazan.

The 600 MW Samtah solar project — also in Jazan — was awarded to the Saudi Electricity Company (SEC) and France’s EDF. A SAR 1.37 bn power purchase agreement (PPA) was signed between SEC and Principal Buyer, where SEC will hold a 50.01% interest in the project, according to a disclosure to Tadawul. The project will be developed, financed, constructed, owned, and operated by the project company.

The 400 MW Al Sefan solar project in the Hail region went to a consortium comprising Dammam-based Al Jomaih Energy & Water and France’s TotalEnergies Renewables.

The bigger picture: Principal Buyer has now signed 43.2 GW of PPA capacity out of 64 GW of renewables slated to be tendered by year-end, with 12.3 GW already online and grid-connected, according to the statement.

REMEMBER- The NREP aims to generate 50% of its electricity from renewables by the decade’s end.