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.
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.”