RENEWABLE ENERGY

The kingdom is proceeding with the development of Ar Rass and Saad solar renewable energy projects, which will have a combined capacity of 1,000 (MW).

The principal buyer, Saudi Power Procurement Company (SPPC) has signed all the project-related deals, including power purchase agreements (PPAs) with the winning consortia.

The 700 MW Ar Rass Solar PV IPP is valued at SAR 1.7 billion, and located in Qassim region in Saudi Arabia, with a levelised cost of electricity (LCOE) of 5.62 HH/kWh.

Saudi Arabia’s ACWA Power holds a 40.1% stake in the facility, with 20% acquired by the Water and Electricity Holding Company (Badeel) – a wholly owned PIF Portfolio Company, and 39.9% by China’s State Power Investment Corporation (SPIC).

“As Saudi Arabia’s leadership ramps up its multi-gigawatt plans for diversifying its energy mix to include renewable energy, solar power is a key component in unlocking positive economic, environmental, and social outcomes, whether it is for consumer use, or in mega-projects,” according to Mohammad Abunayan, ACWA Power chairman.

ACWA Power currently operates Sakaka, a 300 MW solar facility, and is also working on constructing Sudair, a 1,500 MW independent solar PV project with Saudi Aramco and Badeel, which is considered the largest of its kind in Saudi Arabia and one of the largest solar energy projects in the world.

The second PPA was for the 300 MW Saad Solar PV IPP with a consortium led by Jinko Power (HK) Company as a managing and technical member, Jinko Power Middle East Holding Co. Ltd, and Jinko Power Dhafra Holding Co. Ltd. The project, valued at around SAR 800 million, is located in Saad within Riyadh, with an LCOE of 5.56 HH/kWh.

                

 

The two projects will supply enough energy to power over 180,000 households, and avoid over 1.75 million tonnes of carbon emissions per year.

The government plans to award additional renewable energy projects with a total capacity of around 15,000 MW in 2022 and 2023, according to Prince Abdulaziz bin Salman bin Abdulaziz, the minister of energy.

“Prince Abdulaziz said that the award of these projects represents another successful milestone to deliver the National Renewable Energy Program targets and is a testament to the commitment of the kingdom to reduce energy-related emissions, while building a holistic and results-oriented circular carbon economy,” according to the Saudi Press Agency.

“They are also seen as practical steps towards achieving a number of strategic Saudi Vision 2030 goals, for the energy ecosystem in general and for the electricity sector in particular.

 

HARNESSING HYDROGEN

Saudi Arabia is also leading the drive to cultivate new energy sources.

NEOM launched ENOWA in March, aimed at leading the development of the smart city's sustainable energy and water systems. Work to develop these utilities has begun, providing the critical infrastructure for NEOM's key projects on the kingdom's west coast: The Line, its revolutionary urban development; Oxagon, its reimagined industrial city; and Trojena, its sustainable mountain tourism destination. Oxagon is actively seeking tenants for its manufacturing hub, and the supply of energy and water is essential.

NEOM's ambition is to power the entire city with affordable 100% renewable energy, setting the stage for other sustainability projects around the world.

ENOWA has moved quickly and created the region's first Hydrogen and Innovation Development Center (HIDC), to accelerate market solutions and business development across the spectrum of hydrogen, green fuel production, utilisation, and transport.

“HIDC will be a testing ground for new technologies in the clean energy industry and a collaborative learning community for research institutions focused on hydrogen, and the circular carbon economy (CCE). Through these collaborations, HIDC will look to produce and adopt decarbonised and clean synthetic fuels in partnership with Saudi Aramco,” the company said. “The new facility will fast-track the kingdom's goal to
become a global hub of innovation and clean energy.”

The project is expected to open in 2023 and will gather operational data from the facility's first 20 MW electrolyser from Thyssenkrupp Nucera, making it the world's largest green hydrogen and ammonia plant operated by NEOM Green Hydrogen Company (NGHC).

HIDC will also advance ENOWA's plans with Air Products Qudra for H2 mobility to test advanced hydrogen-fuel cell-based mobility and logistics solutions in NEOM.