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PARIS/CAIRO: TotalEnergies will build an 0.3 gigawatt (GW) solar park in Saudi Arabia, while EDF Renewables will build two solar parks totalling 1.4 GW, as part of a series of deals announced on Tuesday during a visit by French President Emmanuel Macron to Riyadh.
The French companies entered into 25-year power purchase agreements with the Saudi Power Procurement Company for the projects, which were awarded on a build-own-operate model as part of the kingdom's fifth renewable tender round.
Saudi Arabia is aiming to build 130 GW of renewable capacity by 2030, up from less than 5 GW today, with the International Energy Agency estimating the kingdom will be responsible for a third of the growth in renewables for the entire Middle East and North Africa region over the next five years.
EDF won tenders to build the 1 GW Al-Masaa and 0.4 GW Al-Henakiyah 2 solar parks in partnership with the Chinese State Power Investment Corporation (SPIC).
TotalEnergies will build the 0.3 GW park in the Rabigh Industrial City in partnership with local Saudi developer Aljomaih Energy and Water Company. It is set to come online in 2026, TotalEnergies said in a separate release.
TotalEnergies has identified the Middle East as a priority location for its future green growth. It is already building Saudi Arabia's 119 MW Wadi Al Dawasir solar park set to come online in early 2025, and is a shareholder in the business-to-business solar firm SAFEER.
An agreement between Saudi Arabia's Public Investment Fund (PIF), wholly-owned subsidiary Saudi Investment Recycling Company (SIRC) and Veolia for the incorporation of waste management and recycling in the kingdom, was also announced.
The value of the agreements was not disclosed, though Saudi Arabia has previously said the entire 3.7 GW renewable round would attract more than 8 billion Saudi riyals ($2.1 billion). (Reporting by Nadine Awadalla and Nayera Abdallah in Riyadh and America Hernandez in Paris. Writing by Menna Alaa and America Hernandez. Editing by Jason Neely and Mark Potter)