The Saudi Power Procurement Company (SPPC) has signed Power Purchase Agreements (PPAs) for three new solar photovoltaic projects under the National Renewable Energy Program.
The agreements were signed with a consortium of ACWA Power Company and the Water & Electricity Holding Company (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF).
The three solar projects – Ar Rass2, Saad 2, and Al Kahfa – will have a combined capacity of 4,550 MW and are expected to generate enough energy to power around 750,000 residential units annually. The LCOE (Levelized Cost of Electricity) for the projects is highly competitive, ranging from 6.36 to 6.72 halalas/kWh.
The Execution of the National Renewable Energy Program is supervised by the Ministry of Energy and is an extension of the energy ecosystem’s efforts towards realizing Vision 2030’s objectives, achieving the optimal energy mix, and displacing liquid fuels in the Kingdom’s power sector.
The program makes use of vast lands to harness renewable energy sources and increase the share of renewables in the energy mix to around 50% by 2030.