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Abu Dhabi state-owned renewable energy firm Masdar, along with two other companies, has won a bid to develop and operate a $1billion solar plant in Saudi Arabia.
The consortium of the UAE firm, France’s EDF Renewables and Saudi conglomerate Nesma Company, has signed a power purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop, build and operate the 1,100-megawatt facility that will power more than 190,000 homes a year, according to a statement.
The Al Henakiyah solar power plant is also expected to displace more than 1.8 million tonnes of carbon dioxide every year.
The consortium bagged the project after submitting the most competitive bid of $16.84 per megawatt hour.
“Masdar is proud to have won the bid to develop the [plant], further strengthening our partnership with Saudi Arabia,” said Mohamed Jameel Ramahi, CEO of Masdar.
The solar facility is expected to reach financial close early next year and connect to the grid in 2025.
“Together, we are geared to navigate the dynamic landscapes of clean energy enabling a sustainable and prosperous future for Saudi Arabia while supporting the Kingdom’s Vision 2030 to produce 50% of its electricity from renewable sources,” said Bruno Bensasson, Chairman and CEO of EDF Renewables and Group Senior Executive Vice President of Renewable Energies.
(Writing by Cleofe Maceda; editing by Seban Scaria)
