Saudi Arabia to add 5.5 GW of solar with new deals

RIYADH, June 27, 2024 – The Saudi Power Procurement Company has signed power purchase agreements (PPAs) worth USD 3.28 billion with local players that will add 5.5 GW to the country’s solar capacity, the Saudi energy ministry said on Thursday.

The PPAs were signed with a consortium of ACWA Power Company; the Water & Electricity Holding Company (Badeel), a wholly owned subsidiary of the Public Investment Fund; and Aramco Power.

The agreements are valued at USD 3.28 billion, Reuters reported, citing a statement from ACWA Power.

The projects include the 2-GW Haden Solar PV farm and Al-Muwaih Solar PV farm, both totalling 2 GW and located in Makkah province, as well as the 1.5-GW Al-Khushaybi PV project in Qassim province.

Starting this year, Saudi Arabia will tender for new renewable energy projects with a total capacity of 20 GW each year, with the aim of reaching 100-130 GW of total renewables capacity by 2030, depending on the growth of electricity demand, the ministry said.

Saudi Arabia had around 2.3 GW of installed solar generation as of the end of 2023, according to the latest EI Statistical Review of World Energy.

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