Masdar wins bid to develop 1,100MW solar plant in Saudi Arabia
Madinah’s Al Henakiyah solar plant will power more than 190,000 homes per year and significantly boost Saudi’s renewables mix
Saudi Power Procurement Company (SPPC) has announced that a consortium of global clean energy leaders – Abu Dhabi Future Energy Company (Masdar), French utility major EDF Renewables and Saudi infrastructure specialist Nesma Company – has won the bid to develop a 1,100 MW solar power plant at Madinah in Saudi Arabia. The Al Henakiyah Solar Plant, which is being set up at a total investment of US $1bn, is expected to reach financial close early next year and connect to the grid in 2025.
Once operational, the Al Henakiyah Solar Plant is expected to power more than 190,000 homes per year in the Saudi city and displace more than 1.8m tonnes of carbon dioxide annually. It will help achieve the target of increasing the share of renewables in the country’s energy mix to around 50% by 2030.
“We are proud to have won the bid to develop the 1,100 MW Al Henakiyah Solar Plant, further strengthening our partnership with Saudi Arabia. The kingdom is a key strategic market for Masdar, and we are committed to supporting the Ministry of Energy and the SPPC to achieve the targets set out under Vision 2030 and the Saudi Green Initiative, as the country accelerates its green transition toward net zero emissions by 2060,” said Masdar CEO Mohamed Jameel Al Ramahi.
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.
Further to this, SPCC has signed a power purchase agreement (PPA) with the winning consortium, which clinched the deal after submitting the most cost-competitive bid of $16.84 per megawatt hour.
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, said SPCC in its statement. In addition, during the first 10 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.
