A consortium of the UAE’s Masdar, France’s EDF Renewables and Saudi Arabia’s Nesma Company has won a bid to develop the 1.1 GW Al Henakiyah solar power plant located in western Saudi Arabia. The consortium subsequently signed a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop the project. SPPC awarded the consortium the project after it submitted a bid of US$16.84/MWh. The US$1bn Al Henakiyah project is expected to reach financial close in 2024 and is scheduled to be connected to the Saudi grid in 2025. Once operational, the solar plant is expected to power more than 190,000 Saudi households and avoid the emission of 1.8 MtCO2/year.
In addition to the Al Henakiyah project, SPPC has signed another 25-year PPA with a consortium including China’s Jinko Power, Sun-Glare, and the US’ Sunlight Energy Group for the 400 MW Tabarjal solar PV independent power plant in northern Saudi Arabia.
Saudi Arabia's National Renewable Energy Program (NREP) targets 58.7 GW of renewable capacity in 2030, 40 GW of which from solar and 16 GW from wind (439 MW and 403 MW in 2021 respectively).