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- Project, in Al Madinah province, will be one of planet’s largest single-site solar plants and when it becomes operated, it is expected that it will power over 190 thousand homes per year and displace over 1.8 million tonnes of CO2 annually
Abu Dhabi: Abu Dhabi Future Energy Company PJSC – Masdar, EDF Renewables and Nesma Company have signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop the 1,100 MW Al Henakiyah solar power plant. Once operational, it is expected that the project will power more than 190 thousand homes per year and displace more than 1.8 million tonnes of carbon dioxide annually.
The estimated US$1 billion project leverages the expertise of global renewables leaders, Masdar and EDF Renewables, and leading Saudi conglomerate Nesma Company. The Al Henakiyah Solar Plant is expected to reach financial close in early 2024 and connect to the grid in 2025. The SPPC awarded the consortium the project after it submitted the most cost-competitive bid of US$16.84 per megawatt hour.
With plans to boost the local economy, at least 19 percent of the equipment, materials and services will be provided by Saudi companies during the construction phase. In addition, during the first 10 years of operations, Saudi nationals will make up 50 percent of the project's workforce. This proportion will rise to 75 percent during the project's entire operational life.
Al Henakiyah Solar Plant, in Al Madinah province, Saudi Arabia, will help to achieve the target of increasing the share of the renewables in the country’s energy mix to around 50% by 2030. Set to be one of the world’s largest single-site solar plants, the project will be developed, built, owned and operated by the consortium as part of a 25-year agreement with the off-taker SPPC.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “Masdar is proud to have won the bid to develop the 1,100 megawatt Al Henakiyah Solar Plant, further strengthening our partnership with Saudi Arabia. The Kingdom is a key strategic market for Masdar, and we are committed to supporting the Ministry of Energy and the SPPC achieve the targets set out under Vision 2030 and the Saudi Green Initiative, as the country accelerates its green transition toward net zero emissions by 2060.”
Bruno Bensasson, Chairman and Chief Executive Officer of EDF Renewables & EDF Group Senior Executive Vice President, Renewable Energies, said: “The 1,100 MW- Henakiyah solar project is another significant milestone in the Kingdom of Saudi Arabia for EDF Renewables, and our partners Masdar and Nesma Renewable Energy, which would not have been possible without the full support provided by the Saudi Power Procurement Company and the Ministry of Energy. 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. After the 400 MW Dumat al Jandal wind power farm currently under operation and the 300MW -South Jeddah Solar Park, the journey ahead is promising, and we are wholeheartedly committed to creating lasting value, nurturing a legacy of positive change in the Kingdom and for the generations to come.”
Faisal Alturki, President of Nesma Group, said: “As Nesma’s flagship renewables business, Nesma Renewable Energy (NRE) is intrinsic to our commitment to proactively support the clean energy and sustainability goals of Saudi Vision 2030. We are therefore extremely proud of the role NRE will play in delivering the Al Henakiyah Solar Project, a ground-breaking initiative in the Kingdom’s renewable energy strategy, and we are confident that the company has an increasingly important role to play in the future.
“The Al Henakiyah Solar Project is a resounding endorsement of our position at the forefront of the renewables industry in Saudi Arabia. As an industry, we are on an ambitious journey together, and one that will ultimately establish Saudi Arabia as a true global leader in renewable energy generation. This project represents a significant milestone on our way to achieving this.”
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About Masdar
Abu Dhabi Future Energy Company (Masdar) is the UAE’s clean energy champion and one of the largest companies of its kind in the world, advancing the development and deployment of renewable energy and green hydrogen technologies to address global sustainability challenges. Established in 2006, Masdar is today active in over 40 countries, helping them to achieve their clean energy objectives and advance sustainable development. Masdar is jointly owned by Abu Dhabi National Oil Company (ADNOC), Mubadala Investment Company (Mubadala), and Abu Dhabi National Energy Company (TAQA), and under this ownership the company is targeting a renewable energy portfolio capacity of at least 100 gigawatts (GW) by 2030 and an annual green hydrogen production capacity of up to 1 million tonnes by the same year.
Contacts:
For Masdar media inquiries, please contact: press@masdar.ae
For more information please visit: http://www.masdar.ae and connect: facebook.com/masdar.ae and twitter.com/masdar
About EDF Renewables
EDF Renewables is an international energy company which develops, builds and operates renewable power generation plants.
As a major player in the energy transition worldwide, EDF Renewables deploys, within EDF, competitive, responsible and value-creating projects. In every country, our teams show their commitment to local stakeholders every day, adding their expertise and capacity for innovation to the fight against climate change.
At the end of 2022, EDF Renewables operates a net installed wind and solar capacity of 11.4 GW (18.5 GW gross) worldwide. Mainly present in Europe and North America, EDF Renewables is pursuing its development by taking a position in promising emerging markets such as: Brazil, China, India, South Africa and in the Middle East. Historically active in onshore wind and photovoltaics, the Company is now strongly positioned on offshore wind and floating wind as well as in new technologies such as energy storage, green hydrogen, floating solar and agrivoltaism.
For media enquiries, please contact: Alexandra.taleva@edf.com; +971 54 522 73 73
For more information please visit: www.edf-renouvelables.com/en
Follow us on LinkedIn: https://www.linkedin.com/company/edf-renewables-middle-east or on Twitter @EDF_Renewables
About Nesma Company
Established in 1979, Nesma Company (‘Nesma’) is a leading privately-owned Saudi Arabian conglomerate active in the UAE, Egypt, and Turkey as well as having a large established presence in its home market of Saudi Arabia. Nesma’s activities span multiple sectors, with the business being increasingly active in large-scale infrastructure projects as a developer and long-term investor. Nesma is a key player in the growing Saudi economy and is proud to support the objectives and ambitions of the Saudi Vision 2030 program.
Nesma aspires to be the most respected diversified company in all its countries of operation and is dedicated to bringing innovative ideas to life, in business as well as society.
For media inquiries, please contact: Arwa Salem (arwa@nesma.com)
For more information, please visit: https://nesma.com
This material is distributed by Daniel J. Edelman, Inc. on behalf of Masdar. Additional information is available at the Department of Justice, Washington, DC.