Saudi Arabia Signs PPA Contracts for Solar Energy Deals Worth $665 Million

Mar 9, 2022 08:59 PM ET
  • Saudi Arabia Energy Minister educates that even more renewable projects worth 15 gigawatts will certainly be added this as well as coming year.
  • Saudi Power Procurement Company authorized PPAs with Ar Rass Solar and also consortium led by Jinko Power.

The Kingdom of Saudi Arabia is bullish on raising the renewable share in its energy mix as it has granted contracts for 2 brand-new solar energy projects. These projects will certainly make an integrated capacity of one gigawatt.

Saudi Arabia is world's biggest oil merchant however has a substantial target to include 60GW of solar energy to the national grid by 2030. In December 2021, the federal government had announced that it had planned to spend greater than $100bn in renewable energy projects to accomplish its international commitment.

When it come to the two solar power projects, Ministry of Energy has informed that the principal buyer and also supervisor of power in the kingdom-- Saudi Power Procurement Company (SPPC) has authorized two different offers that include power purchase agreements (PPA) and also the worth is $665 million with the winning events

Saudi Power Procurement Company inked a PPA with Ar Rass Solar Energy Company for the 700-megawatt Ar Rass Solar photovoltaic or pv independent power project. The winning company belongs to Acwa Power that is based in Saudi Arabia itself. The solar energy project lies in the Qassim area of Saudi Arabia and is valued at 1.7 bn riyals.

In the 2nd agreement, the SPPC authorized a PPA with a Jinko Power led consortium. This is for the Saad Solar PV IPP project located in the Saad location within Riyadh area of Saudi Arabia. The project is for the 300MW capacity as well as is valued at 800m riyals in the agreement.

The Energy Minister of Saudi Arabia, Prince Abdulaziz bin Salman claimed, "The honor of these projects represents an additional successful landmark in providing the National Renewable Energy Programme targets and also is a testimony to the commitment of the kingdom to lower energy related emissions."

The minister hopes for these relocate to help Saudi Arabia to attain its critical objective of Vision 2030 as far as energy ecological community is worried. He discussed that the kingdom will certainly create concerning 15GW of renewable energy this year and the coming year so that the country reaches the ideal energy mix.

Price Abdulaziz added, "Utilizing renewable resource is an important part of the endeavour to reach the optimum energy mix." Saudi Arabia wishes to do away with using one million barrels of crude that is used to produce power by 2030. The renewable resources of energy will certainly make fifty percent of the replacement by the end of this decade.

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