Saudi Arabia signs PPAs for 7 renewable projects worth SAR 31B

Logo of Saudi Power Procurement Co. (SPPC)

Saudi Power Procurement Co. (SPPC) signed power purchase agreements (PPA) for seven solar and wind projects with a total capacity of 15,000 megawatts (MW) and investments reaching SAR 31 billion ($8.3 billion), according to the Saudi Press Agency (SPA).

The signing took place in the presence of Minister of Energy and Renewable Resources Prince Abdulaziz bin Salman, who also chairs SPPC’s board, under the National Renewable Energy Program managed by the Ministry of Energy.

The agreements were awarded to a consortium led by ACWA Power Co., alongside Water and Electricity Holding Co. (Badeel), a Public Investment Fund (PIF) subsidiary, and Aramco Energy Ventures.

The portfolio includes five solar photovoltaic plants and two wind farms located across Riyadh, Asir, Madinah, and Makkah.

Solar capacity is distributed as follows: Bisha (Asir) at 3,000 MW with a levelized cost of electricity (LCOE) of 4.83708 halalas/kWh (1.28989 cents); Al-Humaij (Madinah) at 3,000 MW with 4.90682 halalas (1.30848 cents); Khulais (Makkah) at 2,000 MW with 5.10439 halalas (1.36117 cents); and Afif 1 and 2 (Riyadh), each with 2,000 MW at 4.74736 and 4.72346 halalas (1.26596 and 1.25959 cents), respectively.

Wind projects include Sitarah (Riyadh) with 2,000 MW at 7.71422 halalas/kWh (2.05712 cents) and Shaqra with 1,000 MW at 6.99750 halalas (1.86600 cents).

Signing this group of large-scale projects simultaneously underscores the Kingdom’s prominent role in global clean energy expansion.

The deals also reflected Saudi Arabia’s ability to maintain some of the world’s lowest electricity generation costs, enabled by optimized financing models and growing investor confidence in the local market.

SPPC (main buyer) is tasked with early-stage studies, competitive tendering, and finalizing energy offtake agreements.

So far, SPPC has launched 43,213 MW in renewable tenders, securing agreements for 38,713 MW. Of this, 10,213 MW is already connected to the grid. Linked capacity is expected to reach 12,713 MW by end-2025 and 20,013 MW by the end of 2026.