SPPC awards 5 renewable energy projects worth over SAR 9B

Logo of Power Procurement Co. (Principal Buyer)

Saudi Power Procurement Co., the principal buyer, awarded one new wind power project and four new solar energy projects for electricity generation.

The five projects have a total capacity of 4,500 megawatts (MW), with total investments exceeding SAR 9 billion ($2.4 billion), the Saudi Press Agency (SPA) reported. These projects fall under the sixth phase of the National Renewable Energy Program, supervised by the Ministry of Energy.

The Dawadmi wind energy project in Riyadh Province was awarded to a consortium comprising Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy Company, and Etihad Water and Electricity Company (EtihadWE). The project has a capacity of 1,500 MW and a production cost of 5.01760 halalas/kWh ($1.33803 /kWh), setting a new world record for the lowest levelized cost of energy (LCOE) for wind power generation.

The second project is Najran solar energy project in the Najran Province, which was awarded to Abu Dhabi Future Energy Company (Masdar). The project has a capacity of 1,400 MW and an LCOE of 4.11307 halalas per kWh ($1.09682 /kWh). This represents the second-lowest world record for the cost of generating electricity from solar energy, following the Shuaiba 1 project in the Kingdom.

The Ad Darb solar PV IPP plant in Jazan Province was awarded to Masdar, with a capacity of 600 MW and an LCOE of $1.36070/kWh (5.10262 halala/kWh).

In addition, Samtah solar PV IPP in Jazan Province was given to a consortium comprising Saudi Electricity Company and EDF Power Solutions International. The project has a capacity of 600 MW and a production cost of 5.57544 halalas/kWh ($1.48678 /kWh).

The contract for As Sufun Solar PV IPP plant in Hail Province was awarded to a consortium comprising Al Jomaih Energy & Water Company (AEW), and TotalEnergies Renewables SAS, with a capacity of 400 MW and a production cost of 5.65074 halalas/kWh ($1.50686 /kWh).

The Dawadmi wind project set a new world record for the lowest cost of wind power generation, while the Najran solar project recorded the second-lowest global cost for solar power generation following Shuaibah 1 project, which previously achieved a record-low cost of $1.04/kWh.

SPPC is responsible for conducting preliminary studies, tendering electricity generation projects, and signing power purchase agreements with developer consortia.

By the end of 2025, the total renewable energy capacity tendered is estimated to reach 64 GW, with 43.2 GW of power purchase agreements already signed, including 12.3 GW commissioned and connected to the national grid.