Masdar, EDF Renewables, and Nesma Company have signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop the 1100 MW Al Henakiyah solar power plant. Once operational, it is expected that the project will power more than 190 000 homes per year and displace more than 1.8 million tpy carbon dioxide (CO2).
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/MWh.
With plans to boost the local economy, at least 19% of the equipment, materials and services will be provided by Saudi companies during the construction phase. In addition, during the first five years of operations, Saudi nationals will make up 50% of the project's workforce. This proportion will rise to 75% 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.
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
The Autumn 2023 issue of Energy Global hosts an array of technical articles focusing on green hydrogen, wind installation technology, blade monitoring solutions, and more. This issue also features a regional report looking at some key renewables projects in Australia..
Read the article online at: https://www.energyglobal.com/solar/08112023/masdar-and-partners-sign-ppa-for-1100-mw-solar-project/
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