King Abdullah Economic City is one of the biggest privately-owned projects in the world
International Wind Power Company (IWPC) has signed a contract with King Abdullah Economic City (KAEC) to build the Kingdom’s first commercial wind farm. As per the terms of the contract, IWPC will lease 102,000sqm of land in the KAEC Industrial Valley to build wind turbines that will generate sustainable electricity.
IWPC is a subsidiary of Al Babtain Power & Telecom, a specialist in the renewable energy and telecommunication sectors. Al Babtain is establishing a production facility in the KAEC Industrial Valley and is the company’s first investment in renewable energy development. Production is said to kick-off in 2019.
“We are delighted that the International Wind Power Company has chosen the Industrial Valley to produce renewable energy. This strategic partnership further enhances the Industrial Valley’s state of the art infrastructure and facilities and cements its reputation as the regional destination of choice for leading international and local companies in the logistics and light industry sectors,” said Fahd Al-Rasheed, managing director and group CEO of KAEC.
IWPC is said to be in talks with the concerned authorities to be the supplier of the first renewable wind energy within the Kingdom, in line with Saudi Arabia’s Renewable Energy Plan, which is referenced within Saudi Vision 2030.
“We continue to work toward the aims of Saudi Vision 2030 by opening the door to local and international companies who invest in ventures that diversify the Kingdom’s economy. Renewable energy is a promising sector that holds many development opportunities in the medium and long term,” added Al-Rasheed.
According to government estimates, Saudi Arabia’s peak energy demand is expected to exceed 120-gigawatts (GW) by 2032. In response to this, the Kingdom launched its National Renewable Energy Program (NREP), which aims to increase the share of renewable energy in the total energy mix, targeting the generation of 3.45GW of renewable energy by 2020 and 9.5GW by 2023.
“Saudi Arabia is witnessing a rapid increase in demand for electricity, especially due to the high population growth rate. The project, which will be launched from King Abdullah Economic City, targets the Saudi market in the first place, then the GCC and the Middle East, and ultimately the international market,” said Ibrahim Al Babtain, chairman of Al Babtain Power & Telecommunication Company.