Saudi Arabia’s state-owned Saudi Power Procurement Company (SPPC) has signed 7 new power purchase agreements totaling 15 GW of renewable energy capacity, making it the largest single-phase commitment to renewable energy projects ever signed globally.
The agreements, signed with ACWA Power–led consortia, cover 5 solar PV and 2 wind power projects valued at over SAR 31 billion (USD 8.3 billion). The projects are backed by Saudi Arabia’s Water and Electricity Holding Company (Badeel) and Aramco’s power subsidiary, Saudi Aramco Power Company.
The list of projects in these offtake agreements includes the following:
3 GW Bisha Solar Project in Asir Province for SAR 4.83708 ($0.013)/kWh
2 GW Afif 1 for SAR 4.74736 ($0.0126)/kWh, and 2 GW Afif 2 solar project for SAR 4.72346 ($0.0126)/kWh in Riyadh Province
2 GW Khulis Solar Project in Makkah Province for SAR 5.10439 ($0.014)/kWh
3 GW Humaij Solar Project in Medina province for SAR 4.90682 ($0.013)/kWh
2 GW Starah Wind Project for SAR 7.71422 ($2.06)/kWh, and 1 GW Shaqra wind project for SAR 6.99750 ($1.87)/kWh, in Riyadh Province.
SPPC stated, “It confirms the kingdom's continued leadership in developing renewable energy infrastructure and achieving globally competitive costs of electricity production per kilowatt-hour, due to efficient financing and development models, as well as growing investor confidence in the Saudi investment environment.”
SPPC, the principal buyer for these projects, said that these facilities are part of the National Renewable Energy Program (NREP), led by the country’s Energy Ministry.
SPPC has launched renewable energy generation projects with a combined capacity of 43.2 GW. Out of these, it has signed PPAs for 38.7 GW capacity. A total of 10.2 GW capacity is now connected to the grid and is expected to expand to 12.7 GW by the end of 2025, targeted to exceed 20 GW by the end of 2026.
According to a 2024 Goldman Sachs report, Saudi Arabia aims to install 100 GW to 130 GW of solar PV capacity by 2030, representing an increase over its previous target of 58.7 GW. It is expected to invest $235 billion in clean energy by 2030 (see Saudi Arabia Expected To Invest $235 Billion CapEx In Clean Energy By 2030).
