Saudi Arabia Ramps Up Renewable Energy with 5. 5 Gigawatt Solar Deals

The Saudi Power Procurement Company (SPPC) inked agreements for a trio of new solar photovoltaic projects, boasting a combined capacity of 5. 5 gigawatts (GW). This significant move bolsters the nation’s National Renewable Energy Program, overseen by the Ministry of Energy.

The newly signed Power Purchase Agreements (PPAs) involve a consortium comprised of ACWA Power Company, the Water & Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and Aramco Power, a unit of Saudi Aramco. These projects contribute to the kingdom’s ambitious target of diversifying its energy mix and lessening reliance on fossil fuels.

This recent development comes alongside a broader commitment from Saudi Arabia. The nation intends to announce tenders annually, starting in 2024, for new renewable energy projects with a staggering 20 GW total capacity. This ambitious goal aims to achieve a total renewable energy capacity ranging from 100 GW to 130 GW by the year 2030, with the final figure depending on electricity demand fluctuations.

The kingdom has already made substantial progress in its renewable energy push. As of today, 21 projects have been awarded under the National Renewable Energy Program, accumulating to a total capacity of 19 GW. Encouragingly, 7 GW of these projects are already operational, contributing clean energy to the national grid. Construction is underway for another 8 GW, and 6 projects, totaling 7 GW, are in the final financial closing stages.

The SPPC’s recent agreements with the aforementioned consortium highlight Saudi Arabia’s unwavering commitment to harnessing its abundant solar resources. This shift towards renewable energy not only fosters environmental sustainability but also ensures long-term energy security for the nation.