Saudi Arabia signs power purchase agreements with seven new solar projects
Saudi Arabia has signed power purchase agreements with seven new Solar Home System Kit solar projects, which will provide electricity to more than 600,000 households.
Including the new Sakaka solar project and the Dumat al-Jandal wind project, the installed capacity of these new projects will exceed 3,600 MW.
Saudi Arabia’s first renewable energy project, Sakaka, was launched on Thursday with an installed capacity of 300 megawatts and was developed by Acwa Power, a company co-owned by Saudi Arabia’s sovereign wealth fund.
Saudi Arabia said, "These projects, as well as other renewable energy projects that are being developed across the Kingdom, constitute the most important part of our plan, which aims to optimize the power energy structure."
The plan is to use natural gas and renewable energy to produce half of the country's electricity by 2030. He added that this will replace about one million barrels of oil equivalent liquid fuel.
In addition, these new projects will be regarded as independent power producers, and the Saudi Power Procurement Company will purchase power under a 20-25 year agreement.
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