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Financing Completed for Dumat Al-Jandal Wind Power Plant in Saudi Arabia

Financing Completed for Dumat Al-Jandal Wind Power Plant in Saudi Arabia
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Financing Completed for Dumat Al-Jandal Wind Power Plant in Saudi Arabia

Financing Completed for Dumat Al-Jandal Wind Power Plant in Saudi Arabia

The consortium consisting of EDF Renewables and Abu Dhabi Future Energy Company, Masdar, has completed the financing of the Dumat al-Jandal utility-scale wind project in Saudi Arabia, backed by Saudi and international banks.

The Renewable Energy Project Development Office, REPDO, of the Saudi Ministry of Energy, Industry and Mineral Resources awarded the $500 million Dumat al Jandal wind farm in January following a call for tenders in August 2017.

The winning consortium has submitted the most cost-competitive bid of $21.3 per megawatt-hour, Mwh.

With an installed capacity of 400 megawatts, the Dumat al-Jandal project will be Saudi Arabia’s first wind farm and the largest in the Middle East.

Led by EDF Renewables and Masdar, a subsidiary of Mubadala Investment Company, the project construction will begin shortly and commercial operations are due to start in the Q1 2022.

Vestas, a wind turbine company, is the contracted wind-turbine technology provider and responsible for the engineering, procurement and construction contract.

TSK, a Spanish industrial group, will be responsible for the balance of plant while CG Holdings will provide the substations and high-voltage solutions.

“We are delighted to take part in the country’s first wind project, which is set to be the most powerful wind farm in the Middle East,” said Bruno Bensasson, EDF Group Senior Executive President responsible for Renewable Energies, and Chairman and CEO of EDF Renewables.

“This new project demonstrates our ambitions in the country and represents another step forward under the EDF Group’s Cap 2030 strategy, which aims to double its renewable energy capacity by 2030 – both in France and worldwide – to 50GW,” he added.

“The award of Saudi Arabia’s first and the Middle East’s largest wind farm during Abu Dhabi Sustainability Week in January was a momentous occasion for our company and our partners,” stated CEO of Masdar Mohamed Jameel al-Ramahi.

“It also illustrated the depth of Saudi Arabia’s commitment to realize its bold strategy to substantially increase the contribution of renewables in its total energy mix to 27.3GW by 2024, from the wind as well as solar energy,” Ramahi explained.

He pointed out that the oversubscribed financing of the Dumat al-Jandal project further illustrates the confidence of local and international lenders and the investment community in the Kingdom’s economy and its potential as a hub for highly cost-effective renewable energy development.

The wind farm will supply electricity according to a 20-year power purchase agreement with the Saudi Power Procurement Company, a subsidiary of Saudi Electricity Company, the Saudi power generation, and distribution company.

CEO of the Saudi Power Procurement Company Osama Khawandanah, for his part, said that Dumat al-Jandal project has set the benchmark and shows the potential for onshore wind energy in the Kingdom.
“It is a new reference point and source of confidence as we continue to diversify our power generation system.”

The wind farm will be located 560 miles (896km) north of Riyadh, in the al-Jouf region.

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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
TT
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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.