As part of Round 4 of the Saudi National Renewable Energy Program (NREP), supervised by the Ministry of Energy, Saudi Power Procurement Company (Principal Buyer) has signed two power purchase agreements (PPA) to procure power from AlGhat Wind Project (600 MW) and Wa’ad Alshamal Wind Project (500MW), during the Saudi-Japan Vision 2030 Business Forum.
The agreement was signed with the consortium led by “MARUBENI Corporation” in partnership with Abdulaziz Al-Ajlan Sons Co. for Commercial and Real Estate Investment – Ajlan & Bros.
In a statement on this occasion, Minister of Energy His Royal Highness Prince Abdulaziz Bin Salman bin Abdulaziz Al Saud has expressed his thanks and gratitude to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and to His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, the Crown Prince, Prime Minister and the Chairman of the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector, for all the encouragement, support, enablement and follow up that the Ministry of Energy and its ecosystem receive from the Country’s leadership, to enable achieving the Vision 2030 targets in the energy sector.
Prince Abdulaziz said: “It is my pleasure to announce that AlGhat project achieved a new world record low cost of electricity production from wind power at 1.56558 cents/kWh (5.87094 halalas/kWh) Levelized Cost of Electricity (LCOE), and Wa’ad Alshamal project has also achieved a second world record low for wind power at 1.70187 cents/kWh (6.38201 halalas/kWh) LCOE.”
Prince Abdulaziz added: “The electricity produced from both projects is sufficient to power 257,000 residential units per year, which emphasizes the significance of these projects in enhancing the energy efficiency in Saudi Arabia.”
He also highlighted that these two projects are part of the National Renewable Energy program’s efforts towards harnessing renewable energy resources in the Kingdom, displacing liquid fuels in the Kingdom’s power sector, and achieving energy mix where the share of renewables is around 50% by 2030
Source: Saudi Press Agency
