Saudi Arabia’s energy ministry announced on Monday that the government had awarded Ar Rass and Saad renewable energy projects with a total capacity of 1,000 megawatts.
All project-related agreements, including Power Purchase Agreements (PPAs) with the winning consortia, were signed by the Saudi Power Procurement Company (SPPC), the major buyer.
The first PPA was inked with Ar Rass Solar Energy Company for the 700-MW Ar Rass Solar PV IPP. The project is worth SA$1.7 billion (US$453 million) and is located in the Qassim region of Saudi Arabia.
The second PPA was for the 300-MW Saad Solar PV IPP, which was signed by a consortium led by Jinko Power (HK) Company Limited as Managing and Technical Member, as well as Jinko Power Middle East Holding Co. Ltd and Jinko Power Dhafra Holding Co. Ltd. The project, with a valued of around SA$800 million (US$213.2 million), is located in Saad within the Riyadh region of Saudi Arabia.
In remarks made on the signing ceremony, Saudi Minister of Energy Prince Abdulaziz bin Salman stated that the energy ecosystem aims to release additional renewable energy projects with a total capacity of around 15,000 MW in 2022 and 2023 to achieve the optimal energy mix.
The award of these projects, according to the minister, is another successful milestone in achieving the National Renewable Energy Program's goals, and it demonstrates the Kingdom's commitment to reducing energy-related emissions.
Furthermore, the two projects will generate enough energy to power over 180,000 homes while avoiding over 1.75 million tonnes of carbon emissions each year.
In 2016, Saudi Arabia launched an economic strategic framework named Saudi Vision 2030, according to which the country will position itself as the heart of the Arab and Islamic worlds, the investment powerhouse, and the hub connecting three continents. Ar Rass and Saad renewable energy projects are considered as practical measures toward accomplishing the strategic goals for the energy ecosystem.
The minister went on to say that harnessing renewable energy is an important part of the effort to achieve the best energy mix for power generation, which aims to have a 50% share of natural gas and renewable by 2030, displacing around one-million-barrel equivalents of liquid fuel per day used in electricity production, desalination, and other sectors.