Sigma Capital

18-11-2024

Saudi Power Procurement Company (principal buyer) signs power purchase agreements for five projects with a total capacity of 9,200 MW

Source: MIST

SPA-


In the presence of His Royal Highness Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy and Chairman of the Board of Directors of the Saudi Power Procurement Company (the main buyer), the company today signed power purchase agreements for a group of independent production projects, for solar photovoltaic energy and thermal energy with a total capacity of 9,200 megawatts. The projects for which the power purchase agreements were signed include; Ramah and Nuairiyah thermal power projects, which operate using flexible combined cycle gas turbine technology with readiness to install carbon capture units with a total capacity of 7,200 megawatts: The power purchase agreement was signed for the Ramah-1 and Nuairiyah-1 projects, each with a capacity of 1,800 megawatts, with a consortium comprising ACWA Power, the Saudi Electricity Company, and the Korea Electric Power Corporation (KEPCO). The levelized cost of electricity production for the Ramah-1 project amounted to 4.5859 cents/kWh, and 4.6114 cents/kWh for the Nuairiyah-1 project. The power purchase agreement (PPA) was signed for the 1,800 MW Ramah-2 and Nuairiyah-2 projects with a consortium comprising Abu Dhabi National Energy Company (TAQA), Japan’s JERA, and local company Al Bawani. The levelized cost of electricity production for the Ramah-2 project was 4.5613 cents/kWh and 4.4960 cents/kWh for the Nuairiyah-2 project. The Ramah and Nuairiyah projects are scheduled to start commercial operation in the second quarter of 2028. In addition to the Sadawi solar photovoltaic project, which is part of the fifth phase of the National Renewable Energy Program with a total capacity of 2,000 MW, the PPA was signed for the Sadawi solar energy project, with a capacity of 2,000 MW, with a consortium comprising Abu Dhabi Future Energy Company (Masdar), Korea Electric Power Corporation (KEPCO), and JD Power Development. The project is scheduled to start commercial operation in the second quarter of 2027, and the cost of electricity production amounted to 1.2926 cents/kilowatt-hour for the Sadawi project. It is worth noting that these projects have attracted total investments of nearly 35 billion Saudi riyals, and they represent part of the efforts of the energy sector in the Kingdom to achieve the goals of the "Saudi Vision 2030", as the projects of the National Renewable Energy Program aim to contribute to achieving the optimal energy mix for electricity production, so that renewable energy sources constitute about 50% of this mix, and natural gas constitutes the remaining 50%, by 2030, while displacing liquid fuels used in the electricity generation sector and other sectors in the Kingdom. In this context, the number of renewable energy exploitation projects, whose agreements were signed in the Kingdom, by the end of 2024, amounted to 25 projects, distributed in different regions, and the total electricity generation capacity in these projects amounted to about 23 gigawatts.