As part of the Saudi government’s efforts to achieve global leadership and the optimal mix in the renewable energy sector, the Kingdom is making accelerated efforts to replace liquid fuels with gas and renewable energy sources in electricity production.
On Tuesday, the Saudi Power Procurement Company (SPPC) signed two agreements to purchase energy with a total capacity of 1,500 megawatts.
In September 2022, the Ministry of Energy completed all legal procedures to purchase the Saudi Electricity Company’s shares in the Saudi Energy Production Company, to be fully owned by the state, as part of comprehensive reforms aimed at achieving sustainability and raising the efficiency of the sector within the country.
In remarks to Asharq Al-Awsat, Dr. Mohammad Al-Sabban, former senior advisor to the Saudi Oil Minister, said that the Saudi Energy Production Company was implementing a road map within the framework of Vision 2030, to reach clean energy and achieve net-zero emissions by 2060.
Al-Sabban explained that the two agreements will work towards the country’s goals of reaching 50 percent of solar energy and other energy sources for power generation and water desalination.
The first agreement signed by the Saudi Power Procurement Company within the fourth phase of the National Renewable Energy Program included the purchase of energy for the Hanakiya solar photovoltaic project, with a total capacity of 1,100 megawatts, with an alliance of three companies: Masdar, EDF and Nesma.
This project will contribute to supplying approximately 190,000 residential units with electrical energy annually.
The company also concluded a power purchase agreement for the Tabarjal Solar Photovoltaic Project, with a total capacity of 400 MW, with an alliance led by three companies, namely, Jinko Power (HK) Company Limited, Sun Glare Holding Co. and Sunlight Energy Holding Co.
The project is expected to contribute to supplying approximately 75,000 residential units with renewable electrical energy per year.
