Southern Cement, Tarshid sign 25-year solar PPA

Southern Cement says agreement for company’s Bisha cement factory

Southern Province Cement Co. awarded and signed a 25-year solar power purchase agreement (SPPA) with the National Energy Services Co. (Tarshid) on Sept. 25.

According to a statement on Tadawul, the project will be implemented at the company’s Bisha cement factory.

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The contract entails average annual payments of around SAR 4 million for the duration of the agreement in exchange for power purchases. Construction is expected to begin on Oct. 1, 2025.

Southern Cement explained that the deal is structured on a power purchase basis from Tarshid, with costs lower than its current electricity generation expenses.

It added that no financing is required for the project, as it will not incur any capital or operating expenditures, following obtaining necessary regulatory approvals.

The company noted that the solar power system is expected to commence operations in Q3 2026. According to its preliminary estimates, the cost-saving impact will begin to gradually materialize from the first year of operations, with the financial effect determined by the energy consumption prices at the time.