Saudi Arabia’s Water and Electricity Holding Company (Badeel), which is a utility subsidiary of the sovereign wealth fund PIF (Public Investment Fund), along with leading utility project developer Acwa Power have signed power purchase agreements (PPAs) for three major solar PV projects in the kingdom.
The solar projects are part of the National Renewable Energy Program (NREP) which is led and supervised by the Ministry of Energy, with PIF mandated to develop 70% of NREP’s target capacity by 2030.
The Ar Rass 2, Saad 2 and Al Kahfah projects have a capacity of 2,000MWac, 1,125MWac and 1,425MWac of renewable power respectively, with a combined value of SAR 12.2 billion ($3.25 billion).
During the third quarter of 2023, the new projects are anticipated to enter the financial closure phase, thereby facilitating the provision of clean energy to around 750,000 households.
The Energy Ministry aims to achieve the goals of Saudi Arabia’s Vision 2030 in reaching the optimal power generation energy mix by displacing liquid fuels through harnessing renewable energy sources.
The ministry aims to increase the share of renewables in the energy mix to around 50% by 2030 with the remainder of the energy mix being supplied through high efficiency gas-fueled power plants.
PIF said it is currently developing five new projects, at an investment of over $6 billion in coordination with its partners. that will boast a cumulative capacity of 8GW.
PIF’s renewable projects - Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, Saad 2 - will help support the local private sector through requirements for significant local content contribution and the procurement of equipment, supplies, and services through local supply chains.
PIF Head of Energy & Utilities Mohammed AlBalaihed said: “The three new solar projects are part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030, in line with the National Renewable Energy Program.”
“Renewable Energy is one of PIF’s priority sectors, with a focus on unlocking the capabilities of promising sectors and enabling the private sector to enhance Saudi Arabia’s efforts in diversifying the economy,” he noted.
