Prince Abdulaziz bin Salman: The goal is to launch projects to produce approximately 15,000 megawatts of electricity from renewable energy, during 2022 and 2023.

The Saudi Ministry of Energy has established the Al-Rass and Saad solar photovoltaic projects, with a total capacity of 1,000 megawatts, in the presence of His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy.

On the same occasion, the Saudi Energy Procurement Company, the "main buyer", signed two power purchase agreements with the two winning consortia, the first for the Al-Rass solar photovoltaic project in the Qassim region, with the Al-Rass Solar Company; Owned by the consortium of Water and Energy Works International (ACWA Power), SPIC, and Water and Electricity Holding Company (WEHC).

The production capacity of the project is 700 megawatts, the volume of investment in it is approximately 1.7 billion riyals, and the cost of purchasing electricity is 5.62 halalas/kWh.

The second agreement is for the Saad solar photovoltaic project, which is located in Saad, in the Ramah governorate in the Riyadh region, with Al-Ghazala Energy Company; Owned by the alliance of Jinko Power (Hong Kong) Limited, Jinko Power Middle East Holding Company, and Jinko Power Dhafra Holding Company, the investment volume in the project is approximately 800 million riyals, the production capacity is 300 megawatts, and the electricity purchase cost is 5.56 halalas / kilowatt hour.

On this occasion, His Highness the Minister of Energy announced that the energy system aims to launch projects to produce approximately 15,000 megawatts of electricity from renewable energy, during the years 2022 AD and 2023 AD, in the context of seeking to achieve the targeted energy within the optimal energy mix used to produce electricity.

His Highness the Minister of Energy noted, in a statement, the support of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud - may God support him - and his sound guidance in all areas that bring benefits to the country and citizens.

His Highness also valued the support and backing of His Royal Highness Prince Muhammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense - may God protect him - and his essential role in empowering the energy sector, and his directives that led to raising the level of ambitions, explaining that these projects represent A practical application, on the ground, of the Kingdom's Vision 2030, which contributes to reaching the optimal energy mix, and to the Kingdom's shift from consuming liquid fuels in the production of electricity to gas and renewable energy, which makes them milestones in the march of the energy sector.

His Highness Prince Abdulaziz bin Salman explained that the awarding of these two projects and the signing of related purchase agreements are distinguished steps towards continuing to advance the achievements of the National Renewable Energy Program, and a tangible embodiment of the Kingdom’s commitment to reducing emissions resulting from the production and use of energy, and its keenness, at the same time, to establish Rules of the circular economy approach to carbon.

They also represent practical steps towards achieving a number of strategic objectives of the "Kingdom 2030" vision, for the energy system as a whole, and for the electricity sector, in particular, indicating that the exploitation of renewable energy sources is an important part of the quest to reach the optimal energy mix used in the production of electricity , which aims to have the share of gas and renewable energy sources in this mix at about 50% each by 2030 AD, thus displacing approximately one million barrels of oil equivalent per day from liquid fuels, which are consumed as fuel in the production of electricity, water desalination and in other sectors.

It is noteworthy that the completion of these and other projects, and linking them to the national grid, will contribute to strengthening the Kingdom’s capabilities in producing electricity to meet the national need, enhance the reliability of the electrical network, and support the Kingdom’s ambitious plans to become one of the main countries in the field of electricity production and export using renewable energy, as it enhances Striving to localize the manufacture of solar and wind energy production components, develop their technologies, and empower national competencies working in the sector.

The two projects will contribute to securing the energy needs of more than 180,000 homes, in addition to reducing one million seven hundred and fifty thousand tons annually of carbon emissions, and the Ministry of Energy is offering all renewable energy projects according to the Independent Production System (IPP), as these projects are supported by 25-year agreements. years with the Saudi Energy Procurement Company.