Saudi Power Procurement Company (SPPC) signed Power Purchase Agreements (PPAs) for three solar photovoltaic (PV) Independent Power Producer (IPP) projects totalling 1,700 megawatts (MW) in the fifth phase of the National Renewable Energy Programme.

The PPAs were signed on the sidelines of the Saudi French Investment Forum in Riyadh.

Two agreements were signed with a Chinese-French consortium of SPIC Huanghe Hydropower Development Co. and EDF Renouvelables for the 1,000MW Al-Masa project in Hail province with levelised cost of energy 1.36861 US cents/kWh and the 400MW AlHunaykyah2 project in Madinah province with an LCOE of 1.51631 US cents/kWh.

The combined cost of the two projects have been estimated at $850 million, according to EDF Renouvelables. The Al Masa’a solar power plant is expected to start operations in the second quarter of 2027, while the Al Henakiyah2 solar plant is expected to reach financial close in early 2025 and connect to the grid in the fourth quarter of 2026.   

One agreement was signed Saudi-French consortium of Aljomaih Energy & Water Company and TotalEnergies and Aljomaih Energy & Water Company for the 300MW Rabigh2 project with an LCOE of 1.78138 US cents/kWh.

The PPA for the fourth project of Round 5, the 2,000 MW Sadawi solar PV IPP, was signed last month.

Round 5 shortlisted bidders were announced by SPPC in October 2024. The company had stated that the 4 projects under Round 5 totalling 3,700 MW are expected to attract total investments exceeding 8 billion Saudi riyals ($2.13 billion).

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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