Masdar, EDF Renewables and Nesma win bid for $1 billion solar project
Anticipated as one of the world's largest single-site solar facilities, the plant will annually power 190,000 homes and reduce CO2 emissions by 1.8 million tonnes.
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Saudi Arabia: Anticipated as one of the world’s largest single-site solar facilities, the plant will annually power 190,000 homes and reduce CO2 emissions by 1.8 million tonnes.
Masdar, EDF Renewables and Nesma Company have signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop the 1,100 MW Al Henakiyah solar power plant. Once operational, it is expected that it will power more than 190,000 homes per year and displace more than 1.8 million tonnes of CO2 annually.
The estimated $1 billion project leverages the expertise of global renewables leaders, Masdar and EDF Renewables, and leading Saudi conglomerate Nesma Company. It is expected to reach financial close in early 2024 and connect to the grid in 2025.
The SPPC awarded the project to the consortium after it submitted the most cost-competitive bid of $16.84 per megawatt hour. With plans to boost the local economy, at least 19% of the equipment, materials and services will be provided by Saudi companies during the construction phase. During the first 10 years of operations, Saudi nationals will make up 50% of the project’s workforce. This proportion will rise to 75% during the project’s entire operational life.
The plant, located in Al Madinah province, will help to achieve the target of increasing the share of the renewables in the country’s energy mix to around 50% by 2030. Set to be one of the world’s largest single-site solar plants, the project will be developed, built, owned and operated by the consortium as part of a 25 year agreement with the off-taker SPPC.
Source: Utilities Middle East
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