Saudi Power Procurement Company (Principal Buyer) has awarded five major renewable energy projects - four solar and a wind - worth SAR9 billion ($2.4 billion) to consortiums of leading global players including French groups TotalEnergies and EDF, Korea Electric Power Corporation and Abu Dhabi Future Energy Company (Masdar).
The agreements were signed in the presence of Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy and Chairman of the Board of Directors of the Principal Buyer, the entity responsible for conducting predevelopment studies, tendering power generation projects, and signing Power Purchase Agreements with project developers.
These projects come within the framework of the sixth phase of the National Renewable Energy Program, which is supervised by the Ministry of Energy. Once operational, it will boast a total capacity of 4,500MW.
Principal Buyer said two of the projects - Dawadmi Wind Energy Project, located in Riyadh Province and Najran Solar Energy Project - have achieved a major milestone by setting a new world record for the lowest Levelized Cost of Energy (LCOE).
The Dawadmi Wind Energy Project contract was clinched by a consortium comprising Korea Electric Power Corporation (Kepco), Nesma Renewable Energy Company and Etihad Water and Electricity Company (EtihadWE).
The Kepco consortium, with a LCOE of 1.33803 cent/kWh, achieved a new world record for the lowest cost of electricity generation from wind power, while Najran Solar Energy Project recorded the world’s second-lowest cost of electricity generation from solar energy, following the (Shuaiba 1) Project, one of the kingdom’s projects that had previously set the global record for the lowest cost of electricity generation from solar energy at 1.04 US cents per kWh.
Najran Solar Energy Project is being developed in partnership with Abu Dhabi Future Energy Company (Masdar).
The other key renewable energy projects under Round six for which contracts were awarded include:
*Ad Darb Solar PV IPP Plant, located in Jazan Province, with a capacity of 600 MW. The contract was awarded to Masdar, which presented a LCOE of 1.36070 cent/kWh (5.10262 Halala/kWh).
*Samtah Solar PV IPP Plant, located in Jazan Province, with a capacity of 600 MW. The contract was awarded to a consortium comprising Saudi Electricity Company (SEC), and EDF Power Solutions International which presented a LCOE of 1.48678 cent/kWh.
*As Sufun Solar PV IPP Plant, located in Hail Province, with a capacity of 400 MW. The deal was awarded to a consortium comprising Al Jomaih Energy & Water Company (AEW) Holding, and TotalEnergies Renewables which presented an LCOE of 1.50686 cent/kWh.
Principal Buyer said the awarding of these projects further reinforces the Kingdom of Saudi Arabia’s leading position in developing renewable energy projects reflecting the continued achievement of highly competitive Levelized Costs of Electricity – the lowest globally.
This success is attributed to the efficiency of the kingdom’s financing and development models and the growing confidence in its investment environment.
SPPC said by the year-end, the total renewable energy generation capacity tendered will reach 64 GW. Upon the signing of the round six projects, the total signed Renewable capacity will be 43.2 GW, with 12.3 GW being already connected to the grid.-TradeArabia News Service