ACWA Power will sell the output of its 1.5 GW Sudair solar project at $0.012/kWh, the second-lowest tariff in the world.
The company has signed a 25-year power purchase agreement (PPA) with a consortium led by Saudi Arabia.
ACWA Power and its 762.3 million euro project
ACWA Power’s 1.5 GW Sudair solar project required a 50% stake from the Public Investment Fund (PIF).
But also the participation of the water and electricity holding company Badeel, a holding company 100% owned by the Saudi sovereign wealth fund.
The merger between ACWA Power and Saudi Power resulted in the signing of a power purchase agreement at the official launch of the SAR 3.4 billion ($906.7 million / €762.3 million) project.
It is one of seven PPAs recently signed for around 3 GW of solar photovoltaic capacity.
These will all go online in the Kingdom.
One of the lowest electricity rates in the world
ACWA intends to develop one of the largest single-contract photovoltaic parks in the country.
To achieve this, the complex will sell electricity at $0.01239, or €0.0084 / kWh.
This will be the second-lowest tariff in the world.
Initial commissioning is scheduled for the second half of next year.
Once fully operational, the solar park will have a staggering production capacity.
In fact, it will be capable of meeting the electricity demand of around 185,000 households a year.
Saudi Arabia aims for 58.7 GW of renewable energy by 2030
The Independent Power Producer (IPP) project will be implemented in line with the FIP commitment.
The latter calls for 70% of Saudi electricity to be renewable.
This is in line with Saudi Arabia’s Vision 2030 plan.
With this program, the Kingdom aims to achieve an installed renewable energy capacity of 58.7 GW.
Solar deployment will account for 40 GW.
This new ACWA Power project joins the 300 MW Sakaka solar park inaugurated on April 9, 2021.
With these projects, the company is demonstrating its determination to reassert itself as a key player in the renewable energies sector.
Saudi Arabia is also multiplying the number of projects on its soil, and is moving in this direction towards a massive deployment of cleaner energies.
