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Saudi Arabia plans 2.6 GW solar project in the Mecca region

The Ministry of Energy of Saudi Arabia and the governor of Mecca Province have signed a Memorandum of Understanding (MoU) for the development of a 2,600 MW solar complex in the Mecca region. The 2.6 GW Faisaliah solar power project would be built in phases, without any completion date specified. The bulk of the project - 2 GW - would be directly implemented by the government-run sovereign wealth fund Public Investment Fund (PIF) and selected partners, while 600 MW would be tendered by the Saudi Renewable Energy Project Development Office (REPDO) later in 2019.



In January 2019, the Saudi government announced a target of 40 GW of solar capacity by 2030 and its plans to allocate almost 2.2 GW of solar PV capacity in 2019 under the Round 2 of the National Renewable Energy Program (NREP). So far, only 700 MW of renewable energy capacity have been allocated under the NREP first round, of which 300 MW of solar PV for the Sakaka project (won by ACWA Power with a record low tariff of around US$2.34c/kWh). In late January 2019, the Saudi Arabian Renewable Energy Project Development Office (REPDO) issued the expressions of interest (EoI) for the development and construction of seven solar photovoltaic (PV) projects with a combined capacity of 1,515 MW. More than 250 companies would be interested in the tender.

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