Masdar, EDF Renewables, and Saudi Arabia’s Nesma Company have partnered to manage a $1 billion solar project in Saudi Arabia’s Al Madinah province under a power purchase agreement with the Saudi Power Procurement Company.
The consortium secured the Al Henakiyah solar power project, boasting 1,100-megawatt capacity, by submitting the lowest bid at $16.84 per megawatt hour. The consortium will construct, own, and operate the project under a 25-year agreement with SPPC.
Solar Project to Power 190,000 Homes and Cut 1.8 Million Tonnes of CO2 Annually
It is expected that the project will annually supply electricity to over 190,000 homes and reduce carbon dioxide emissions by more than 1.8 million tonnes each year once it is operational. The project is anticipated to achieve financial closure in early 2023 and connect to the grid by 2025.
Masdar’s CEO, Mohamed Al Ramahi, expressed the company’s commitment to supporting Saudi Arabia’s green transition as it aims to achieve net-zero emissions by 2060. Established in 2006, Masdar is actively working toward a renewable energy portfolio of at least 100 gigawatts and annual green hydrogen production of up to 1 million tonnes by 2030.
Saudi Arabia, a major oil producer, has set ambitious targets to combat climate change and reduce carbon emissions. It aims to achieve net-zero carbon emissions by 2060.
Fostering Saudi Arabia’s Renewable Energy Leadership with Al Henakiyah Solar Plant
Saudi companies will supply a minimum of 19% of equipment, materials, and services during the construction phase of the Al Henakiyah solar plant. Additionally, during the initial decade of operations, Saudi citizens will make up 50% of the workforce, increasing to 75% throughout the project’s operational life. This initiative will contribute to Saudi Arabia’s goal of increasing the share of renewables in its energy mix to approximately 50% by 2030.
Faisal Alturki, President of Nesma Group, emphasised the project’s significance in establishing Saudi Arabia as a global leader in renewable energy generation. Established in 1979, Nesma Company is a privately-owned Saudi conglomerate with operations in the UAE, Egypt, and Turkey.
EDF Renewables is an international energy company specializing in the development of renewable power generation plants, with a net installed wind and solar capacity of 11.4 gigawatts worldwide as of the end of the previous year.
