Saudi Power Procurement Company inks two wind PPAs
Saudi Power Procurement Company (SPPC) has announced the signing of two high-profile power purchase agreements (PPAs) for a brace of wind projects in the Kingdom with a combined capacity of 1.1 gigawatts, following awarding to a consortium led by Marubeni Corporation.
Saudi Power Procurement Company (SPPC) has announced the signing of two high-profile power purchase agreements (PPAs) for a brace of wind projects in the Kingdom with a combined capacity of 1.1 gigawatts, following awarding to a consortium led by Marubeni Corporation.
A wind project first for a Japanese power company in the Kingdom, Marubeni will work together with Saudi Arabia’s Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company (‘Ajlan & Bros.’) to develop, construct, operate and maintain the Al-Ghat and Wa’ad Al-Shamal independent power producer (IPP) onshore facilities.
The 600-megawatt Al-Ghat facility, located in Riyadh province, and 500 megawatt Wa’ad Al-Shamal plant in the northern borders city of Turaif will provide power for a contracted period of 25 years following commercial operation commencement.
In a statement on the official signing shared via the Saudi Press Agency, the country’s Minister of Energy, HRH Prince Abdulaziz bin Salman Al-Saud, noted the AlGhat project had achieved a ‘new world record low cost of electricity production from wind power at 1.56558 cents/kWh (5.87094 halalas/kWh) Levelized Cost of Electricity (LCOE)’ with Wa’ad Al-Shamal achieving a ‘second world record low for wind power at 1.70187 cents/kWh (6.38201 halalas/kWh) LCOE.’
According to HRH Prince Abdulaziz, the electricity produced by the two sites will be sufficient to power 257,000 residential units per year. They will also contribute towards National Renewable Energy Program (NREP) efforts to harness renewable energy resources in the Kingdom, displacing liquid fuels in the power sector, and supporting a targeted future renewables mix of 50 per cent by 2030.
In 2021, a Marubeni and Aljomaih Energy & Water Company-led consortium reached financial close for the 300-megawatt Rabigh Solar PV IPP project following a competitive tender process. The PPA was signed with SPPC for a period of 25 years.
The project was one of the first renewables deals to include an export credit agency (ECA) soft mini-perm structure under committed financing, which was combined with an Islamic facility tranche.
*Image Credit: Arab News
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