The Saudi Power Procurement Company (SPPC) has announced the signing of offtake agreements for 1,500 MW solar PV capacity with 2 separate consortiums under round 4 of the National Renewable Energy Program (NREP) of Saudi Arabia.
The trio of Masdar, EDF Renewables and Nesma Company have secured the rights to build and operate the 1.1 GW Al Henakiyah Solar PV Project for the lowest winning bid of SAR 6.31575/kWh or $0.01684/kWh. This project will generate enough clean energy to power around 190,000 residential units/year.
The previous solar power plant of the Masdar-EDF Renewables-Nesma consortium, the 300 MW Jeddah Solar Plant, is contracted with the SPPC for the winning bid of $0.01624/kWh (see Financial Closure For 300 MW Project In Saudi Arabia).
In a separate announcement, Masdar said the consortium will target to achieve financial closure for the Al Henakiyah project in early 2024, and grid connect it in 2025.
Expected to be one of the world's 'largest' single-site solar plants according to Masdar, the Al Henakiyah plant is expected to cost an investment worth $1 billion.
SPPC has also announced the consortium of Jinko Power (HK) Company Limited, Sun Glare Holding and Sunlight Energy Holding the winner of the 400 MW Tabarjal Solar PV Project. The levelized cost of electricity (LCOE) locked for this project is SAR 6.40482/kWh or $0.0170795/kWh.
Jinko says the project will be located in the Al-Jouf Province with construction spread over 2024 to 2025. It plans to deploy bifacial solar panels for the site.
The Tabarjal project will supply power to around 75,000 residential units/year, according to the SPPC.
It is Jinko Power's 2nd solar project win in Saudi Arabia after it won 300 MW AC SAAD project in 2022 (see China PV News Snippets).
"We would like to thank SPPC and Ministry of Energy for a fair and efficient tendering process paving the way for international developers like ourselves to enter and thrive in the market. We are keenly looking for future pipeline projects given its massive potential, as well as strategic alignment towards decarbonization and renewable energy generation in the Kingdom," said the President of Jinko Power International Business, Charles Bai.
The tender for this 1.5 GW solar capacity was announced in September 2022 as Saudi Arabia aims to use the vast stretches of land to meet its renewable energy generation aim of 50% by 2030, and displace liquid fuels in its power sector (see Saudi Arabia Launches 3.3 GW Renewables Tender).
In April 2021, the Saudi Crown Prince Mohammed Bin Salman had said that the country had secured a record-low winning bid of $0.0104/kWh for a 600 MW solar power plant (see World Record Low Solar Bid Of $0.0104/kWh In Saudi Arabia).