A consortium of Masdar, EDF Renewables and Nesma Co has signed a Power Purchase Agreement with the Saudi Power Procurement Company (SPPC) to build, develop and operate the 1100 MW Al Henakiyah solar power plant under a 25 year agreement with the off-taker SPPC. Once operational, it is expected that the plant will displace more than 1.8 million tonnes of carbon dioxide annually. Located in Al Madinah province, Saudi Arabia, it will be one of planet’s largest single-site solar plants when it becomes operational.
The estimated US$1 billion project is expected to reach financial close in early 2024 and connect to the grid in 2025. The SPPC awarded the consortium the project after it submitted the most cost-competitive bid of US$16.84 per MWh.
In keeping 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. In addition, during the first 10 years of operations, Saudi nationals will make up 50 % of the project's workforce, a proportion that will rise to 75 % during the project's operational life.
The new plant will also will help to achieve the Saudi government’s target of increasing the share of the renewables in the country’s energy mix to around 50% by 2030.
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