Saudi Arabia 1.5GW solar project reaches financial close
Local developer Acwa Power has announced that the 1.5GW Sudair solar independent power producer (IPP) project in Saudi Arabia has reached financial close. The Sudair solar project will require a total investment of SR3.4bn ($910m)
Local developer Acwa Power has announced that the 1.5GW Sudair solar independent power producer (IPP) project in Saudi Arabia has reached financial close.
Energy & Utilities reported in April that Acwa Power had signed a 25-year power purchase agreement (PPA) for the 1.5GW Sudair IPP project, which is being developed under the solar programme of the Public Investment Fund (PIF), the Saudi sovereign wealth fund. The Sudair solar project will require a total investment of SR3.4bn ($910m).
The tariff of $c1.239/kWh for the Sudair IPP project was the second lowest PV solar tariff in the world when the PPA was signed, only beaten by the Fasiliyah IPP, also being developed by Acwa Power.
Acwa Power has revealed that SAPCO, a fully owned subsidiary of Saudi Aramco, has joined the developer consortium along with Badeel, a company fully owned by the PIF. Acwa Power is 50 per cent owned by PIF.
Acwa Power and Badeel will each hold a 35 per cent stake in the special purpose vehicle (SPV) set up to develop the project – “Sudair One Renewable Energy Company.” SAPCO will hold a 30 per cent stake in the SPV.
The 1.5GW Sudair PV project is by far the largest PV solar project awarded in Saudi Arabia to date, and also among the largest single-site PV projects in the world.
The project will provide enough power for 185,000 homes and will offset 2.9 million tonnes of carbon emissions a year.
The renewables arm of India’s Larsen & Toubro (L&T) has been appointed as the engineering, procurement and construction (EPC) contractor for the Sudair solar IPP project.
The projects are part of Saudi Arabia’s ambitious target to develop 58.7GW of renewable energy capacity by 2030. The Ministry of Energy's Renewable Energy Project Development Office (Repdo) will oversee the development of 30 per cent of this through a competitive tendering programme, with the PIF to procure the rest through directly negotiated contracts with investors.
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