Saudi-based Jinko Power Technology Co subsidiary – Al Ghazala Energy Company – has begun construction of its Saad Solar PV project in the Kingdom, following the project’s financial close.
Engineering and construction firm Elsewedy Electric for Transmission and Distribution of Energy (EET&D) has been selected as the EPC contractor. The scope of the full-wrap EPC contract covers design, supply, construction, warranty, initial operation and maintenance of the project.
The project is located near the town of Saad, and is part of the Category B projects under the third round of competitive tenders of the Kingdom’s National Renewable Energy Programme (NREP). The 300MW power project is scheduled for commissioning in Q4 2024, the firm stated.
A consortium of three leading lenders is providing long-term, non-recourse project financing to Ghazala. The project debt facilities comprises both Islamic and structured senior tranches, the statement explained.
In mid December 2022, Dubai’s AMEA Power was awarded a 120MW solar project in South Africa.
“The financial closing of the Saad Project during tumultuous times for the world and the solar industry specifically is a testament of Jinko Power’s commitment to the renewable industry in Saudi Arabia, and its capabilities to develop and execute projects with professionally experienced teams spanning across technical, supply chain, finance, legal and project management. We remain committed to the kingdom and to successful completion and operation of the project,” commented Charles Bai, President of Jinko Power International Business.
With the achievement of the project’s financial close and approval from the off-taker, Saudi Power Procurement Company (SPPC), to commence construction, Ghazala said it has begun the mobilisation of its manpower and the EPC contractor on site.
Senior Managing Director of Jinko Power, Mothana Qteishat added, “A great start to the year 2023. The closing of the Saad Project underpins our commitment towards Prince Mohammad bin Salman and Saudi Arabia’s Vision 2030. This adds very well to our track record in the region with the world’s largest single-site solar plant under operation (the 1.2GW Sweihan Project in Abu Dhabi), and the world’s largest single-site plant under construction (2.1GW Dhafra Project in Abu Dhabi).
“We are glad to have elected Elsewedy Electric as our partner/EPC contractor for our first project in the Kingdom, who brings their regional know-how,” Qteishat remarked.
In early January 2023, SPPC said that it planned to re-tender two IPPs in Saudi Arabia.
A 25-year power purchase agreement was signed in March 2022 with SPPC.
In late January 2023, EWEC launched bidding for an Abu Dhabi solar plant project.