Saudi Aramco joins ACWA-led consortium creating 1.5 GW PV plant
- A consortium that is establishing Saudi Arabia's largest solar project has gotten to economic close for the plant and has protected the backing of state oil producer Saudi Aramco.
The Saudi Aramco Power Company (SAPCO), an unit of Aramco, has actually signed up with the consortium behind the 1.5 GW Sudair plant that is led by programmer ACWA Power and also includes the Water & Electricity Holding Company (Badeel), a company possessed by the nation's Public Investment Fund (PIF).
ACWA and Badeel will each very own 35% in the special function vehicle Sudair One Renewable Energy Company, which was incorporated for the project, with SAPCO holding a 30% risk.
With an investment value of SAR 3.4 billion (US$ 906 million), the Sudair project will certainly be created in Sudair Industrial City and attribute bifacial PV modules and trackers.
An engineering, procurement and construction (EPC) contract for the plant was signed with Larsen & Toubro in April, with the first stage of the project expected to start creating electricity throughout the 2nd half of 2022.
A 25-year power purchase agreement (PPA) for the plant has actually been authorized with the Saudi Power Procurement Company.
Financing for the project is being supplied by Mizuho Bank, Riyad Bank, Korea Development Bank, Arab Petroleum Investments Corporation, Al Rajhi Banking & Investment Corporation, Standard Chartered, Bank Al Bilad, Saudi British Bank and SMBC International.
The launch of the Sudair plant was revealed at the inauguration of the Sakaka PV project, which was also developed by ACWA, in April 2021.
Elsewhere, ACWA last year authorized a power purchase agreement for the 5th phase of the Mohammed container Rashid Al Maktoum Solar Park in Dubai and lately secured financing for the construction of a 200MW PV plant in Egypt.
ACWA chairman Mohammad Abunayyan claimed the Sudair development will certainly see the company transfer its experience and understanding in the worldwide renewables market back to Saudi Arabia.
"The project will motivate Saudi companies to take part in the application of renewable energy projects and assistance local talent in cultivating the skills and proficiencies required in this flourishing market, which constitutes among the kingdom's key columns for lasting socioeconomic development," he said.
The plant is the first project under PIF's renewable energy programme, which aims to support Saudi Arabia's power change and to supply 70% of the country's renewable energy.
Other recent developments in Saudi Arabia's PV industry have seen a consortium in between Masdar, EDF Renewables and Nesma Holding Company begin on a 300MW PV project, while Total has actually developed a joint venture with industrial empire Zahid Group focused on dispersed solar.