A consortium of UAE clean energy company Masdar, China’s GD Power and Korea Electric Power Corporation (Kepco) has been awarded the right to develop the 2-gigawatt Al Sadawi solar project in Saudi Arabia.
The project, which is expected to be operating commercially by the second quarter of 2027, will offer clean energy at a competitive price of 1.2926 cents per kilowatt-hour, the Saudi Press Agency reported on Monday, citing a statement from the Ministry of Energy.
Masdar, which opened an office in Saudi Arabia’s capital Riyadh in 2022, aims to expand its total capacity to at least 100 gigawatts of renewable energy by the end of the decade, from about 20 gigawatts at present.
The solar plant is one of five power projects for which Saudi Arabia signed agreements on Monday, totalling 9.2 gigawatts and set to attract $9.3 billion in investment, the ministry said.
On Tuesday, the kingdom also awarded contracts to a consortium made up of Abu Dhabi National Energy Company, better known as Taqa, Japan’s Jera and Al Bawani to build two gas-powered plants.
These plants will have a combined capacity of 3.6 gigawatts and be equipped with carbon-capture technology, Taqa said in a separate statement on Tuesday.
The facilities will be developed by special-purpose bodies jointly owned by Taqa, the largest stakeholder with 49 per cent, Jera, with 31 per cent and Al Bawani, with 20 per cent.
“In addition to signing the [agreements], we are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants,” said Farid Al Awlaqi, chief executive of Taqa’s generation business.
In March, Taqa and Jera signed an agreement with a Saudi Aramco joint venture to build an electricity and stream-generation plant in Saudi Arabia.
The plant, which is expected to be up and running in 2027, will supply up to 475 megawatts of power and 452 tonnes per hour of steam to the planned $11 billion Amiral petrochemical complex in Jubail in the Eastern Province.
The projects support Saudi Arabia’s National Renewable Energy Programme, which aims to achieve a 50-50 energy mix from gas and renewables by 2030, replacing liquid fuels in electricity and other sectors across the kingdom.
So far, Saudi Arabia has signed deals for 25 renewable energy projects spread across the country, with a combined capacity of about 23 gigawatts.
Last week, Saudi Arabia, which aims to reach net-zero emissions by 2060, launched a voluntary carbon market exchange platform.
Saudi Arabia is also setting up an emissions compliance system at national level. The kingdom is following a phased approach in setting up a carbon market, to “ensure readiness” and avoid the pitfalls experienced by the EU and other regions, Energy Minister Prince Abdulaziz bin Salman said at the Future Investment Initiative conference in Riyadh last month.
