ACWA Power wins $302m renewable energy project in Saudi Arabia

ACWA Power wins $302m renewable energy project in Saudi Arabia
ACWA Power has been awarded the power purchase contract for Saudi's first-ever utility-scale renewable energy project [representational image].
Published: 7 February 2018 - 5:37 a.m.
By: Fatima De La Cerna

A 25-year power purchase contract has been awarded to ACWA Power for the first-ever utility-scale renewable energy project in Saudi Arabia.

The Sakaka independent power producer (IPP) photovoltaic (PV) solar project, which has an investment value of $302m (SAR1.1bn), will generate 300MW upon completion, ACWA Power said in a press statement.

Located in Al Jouf, at a site spanning more than 600ha, the project was awarded to the company at a new world-record tariff of US cents 2.3417/kWh (8.781 halalas/kWh).

According to ACWA Power, the plant is the first of what will be a series of procurement initiatives under the kingdom’s national renewable energy programme, which aims to produce 9.5GW of renewable energy by 2023.

READ: Details of Saudi renewable energy programme's Round 1 revealed

Paddy Padmanathan, president and chief executive officer of ACWA Power, commented: "We are very excited to have won this project, through such a rigorous [and] transparent process, at a new world-record tariff.

“It will set the foundation for a robust and competitive [renewable energy] market in the kingdom, thus enabling Saudi Arabia to take advantage of all intrinsic valuable ingredients available to become a global hub for research, development, manufacture, and investment in the rapidly [changing] energy sector.”

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