The Saudi Aramco Power Company (SAPCO), which is a fully owned company of Saudi Aramco, has joined a consortium led by KSA-based ACWA Power and Badeel, a company fully owned by the Kingdom’s Public Investment Fund (PIF), on the $906mn (SAR3.4bn) Sudair Solar PV project, which is the first project under PIF’s renewable energy programme.
ACWA Power – in which PIF holds a 50% stake – and Badeel will each own 35% in the special purpose vehicle “Sudair One Renewable Energy Company”, which was incorporated for the project; with SAPCO holding a 30% stake.
Saudi Aramco’s investment in the Sudair project is its first participation with the Kingdom’s Public Investment Fund (PIF) in its renewable energy programme.
This reflects the company’s efforts to advancing sustainable energy solutions within its operations and Saudi Arabia, where a variety of low-carbon energy solutions are being deployed.
The Senior Vice President of Downstream at Aramco, Mohammed Al Qahtani, said: “Our involvement in the Sudair Solar PV plant reflects our efforts to advancing sustainable energy solutions, both within our own operations and the broader energy network.
“While hydrocarbons will continue to be a vital part of the energy mix for decades to come, renewables like solar have an important role to play in helping achieve the world’s climate goals.”
Al Qahtani added: “Sudair will support Saudi Arabia’s ambition to generate part of the nation’s power needs from renewable energy by 2030, and is one of several low-carbon energy options being deployed by Aramco.”
The EPC agreement for the construction of the Sudair Solar PV was signed with Larsen & Toubro in April 2021.
Phase 1 of the project is expected to begin producing electricity during the second half of 2022, contributing towards the Saudi Green Initiative.
The Sudair Solar PV project, which is located at Saudi Arabia’s Sudair Industrial City, is set to become one of the largest single-contracted solar PV plants in the world and the largest of its kind in Saudi Arabia.
A 25-year power purchase agreement for the plant was signed with the Saudi Power Procurement Company, with the tariff being among the lowest for solar PV projects globally.
Using bi-facial modules with tracking technology, the plant is set to deliver highly efficient performance and be capable of powering 185,000 homes, while offsetting nearly 2.9 million tonnes of emissions per year.
A specialised Saudi technical team at the Ministry of Energy selected the Sudair project site and carried out the engineering requirements and preliminary studies of the project with the aim of achieving the highest levels of efficient energy production and contributing to shaping the circular carbon economy, which the Kingdom adopted during its presidency of the G20 last year.
The Sudair solar project is a testament to the Kingdom’s continuous efforts to reduce emissions resulted by the energy sector.
Additionally, the Ministry of Energy utilises its Renewable Energy Programme and Local Content Development Programme to enable the prosperity of this promising sector and its supply chains through various initiatives such as mobilising private sector investments and encouraging partnerships between the public and private sectors to create a competitive national market for renewable energy.
