Saudi Arabia awards 4.5 GW renewable projects

Saudi Arabia’s Power Procurement Company (SPPC) has awarded five renewable energy projects with a combined capacity of 4.5 GW under the sixth phase of the National Renewable Energy Programme (NREP). Supervised by the Ministry of Energy, the projects include one wind and four solar plants, representing total investments of more than $2.4 billion.

SPPC will manage project development, tendering, and power purchase agreements. The awarded projects are expected to support the kingdom’s plan to expand renewable generation and reduce dependence on liquid fuels in power production.

The 1,500 MW Dawadmi wind IPP project in Riyadh province was awarded to a consortium of Korea Electric Power Corporation, Nesma Renewable Energy Company, and Etihad Water and Electricity Company PJSC. The project achieved a record-low levelised cost of electricity (LCOE) of $0.01338 per kWh.

In the Najran region, the 1,400 MW Najran solar project will be developed in partnership with Masdar, with an LCOE of $0.01096 per kWh. Two 600 MW solar PV IPP plants—Ad Darb and Samtah—will be located in Jazan province. Masdar secured the Ad Darb project, which reported an LCOE of $0.01360 per kWh, while the Samtah project was awarded to a consortium of Saudi Electricity Company and EDF Power Solutions International SAS at an LCOE of $0.01486 per kWh.

The 400 MW As Sufun solar PV IPP project in Hail province was awarded to a consortium of Al Jomaih Energy & Water Company and TotalEnergies Renewables SAS, achieving an LCOE of $0.01506 per kWh.

With these new projects, Saudi Arabia’s total renewable energy capacity is expected to reach 43.2 GW, of which 12.3 GW is already connected to the grid. According to the Ministry of Energy, the kingdom aims to achieve an optimal and cost-efficient energy mix by 2030, with renewables and natural gas together accounting for about half of the electricity generation.