Saudi Public Investment Fund launches Sudair Solar PV project
Published by Bella Weetch,
Editorial Assistant
Energy Global,
The Public Investment Fund (PIF) has announced a major milestone in its renewable energy programme with the launch of the Sudair Solar PV plant in Sudair Industrial City, Saudi Arabia, with a PIF-backed consortium signing a power purchase agreement (PPA) with the Saudi Power Procurement Company for 25 years.
The announcement came during the inauguration ceremony of the Sakaka solar PV plant, also located in Saudi Arabia, under the patronage of HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister, Chairman of the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector. The ceremony was attended by HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy, and HRH Prince Faisal bin Nawwaf bin Abdulaziz Al Saud, Governor of Al-Jouf Region.
The project’s initial commissioning is expected during 2H2022. It is set to become one of the largest single-contracted solar PV plants in the world and one of the largest of its kind in Saudi Arabia at an installed capacity of approximately 1500 MW.
With an investment value of approximately SAR3.4 billion, Sudair PV IPP will be capable of powering 185 000 homes and offsetting nearly 2.9 million tpy of emissions. The project has also recorded the second lowest cost globally for solar PV electricity production (US$0.1239/kwh).
The PIF-backed consortium is led by ACWA Power, in which PIF holds a 50% stake, which has partnered with Badeel, a 100%-owned PIF portfolio company.
The landmark renewable energy project is a significant step and a key part of PIF’s commitment to developing 70% of Saudi Arabia’s renewable energy capacity outlined in the Kingdom’s Vision 2030.
The development of renewable energy capacity will also support the delivery of the Saudi Green Initiative. Recently announced by the Crown Prince, this initiative aims to chart a path for Saudi Arabia and the region to protect the planet by clearly defining an ambitious road map that rallies the region and will significantly contribute to achieving global targets in confronting climate change.
The announcement comes as part of the PIF Strategy 2021 - 2025, which focuses on unlocking the capabilities of promising sectors to enhance the country’s efforts in diversifying revenue sources. PIF and its subsidiaries aim to contribute SAR1.2 trillion to non-oil GDP cumulatively by the end of 2025 by activating growth opportunities for strategic and vital sectors in Saudi Arabia.
PIF has identified utilities and renewables as one of the 13 strategic sectors in its strategy, and the development of Saudi Arabia’s renewable energy sector is also a core objective of Vision 2030, Saudi Arabia’s blueprint for a modern and diversified economy.
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Read the article online at: https://www.energyglobal.com/solar/13042021/saudi-public-investment-fund-launches-sudair-solar-pv-project/
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