A consortium of Masdar, EDF Renewables, and Nesma Holding has won the bid to construct a 1.1GW solar power plant in Saudi Arabia. Its lowest tariff bid of 16.84 US cents per kilowatt-hour secured the Al Henakiyah solar project from the Saudi Power Procurement Company (SPPC).
Headquartered in Abu Dhabi, the Masdar consortium, France’s EDF Renewables, and Saudi enterprise group Nesma have signed a 25-year power purchase agreement with SPPC. The Al Henakiyah plant is under development with an estimated $1 billion investment. It will achieve financial close in early 2024 and come online in 2025.
The project will contribute to Saudi Arabia’s goal of increasing the share of renewables in its energy mix to close to 50% by 2030. It is also expected to support the local economy, with plans to procure at least 19% of equipment, services and materials from Saudi companies during construction. In the initial five years of operation, 50% of workers at the solar plant will be Saudi nationals, with the target of increasing this quota to 75% over the entire operating life of the project.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “Masdar is proud to have been awarded the development of the 1,100MW Al Henakiyah solar power plant, further strengthening our partnership with Saudi Arabia. The Kingdom is a key strategic market for Masdar, and we are committed to supporting the Energy Ministry and SPPC in achieving the goals set out in the Saudi Vision 2030 and Saudi Green Initiative as the nation accelerates its green transition towards net zero emissions by 2060.”
Bruno Bensasson, EDF Group Senior Executive Vice-President Renewable Energies and Chairman and CEO of EDF Renewables said: “The 1.1GW Henakiyah solar project is another major milestone for EDF Renewables and our partners Masdar and Nesma Renewable Energy in the Kingdom of Saudi Arabia, made possible through the unfailing support of Saudi Power Procurement Company and Ministry of Energy. We are united in harnessing the dynamic landscape of clean power to create a sustainable and prosperous future for Saudi Arabia, while supporting the Kingdom’s Vision 2030 goal of 50% power from renewables. With the current operational 400MW Dumat Al Jandal wind farm and 300MW Jeddah solar park, the journey ahead looks promising as we wholeheartedly commit to creating lasting value.”
