Saudi Arabia, the world’s biggest oil exporter, has announced new agreements for renewable power projects across the kingdom as it seeks to commit to a green energy future.
The Gulf kingdom launched the Sakaka IPP PV solar project, its first, adding that construction of the Dumat Al-Jandal wind power project will be completed soon.
The country has also signed power purchasing agreements on seven other renewable projects which together will generate more than 3,600MW.
They will have the capacity to power more than 600,000 households and reduce greenhouse gas emissions by more than 7 million tons, Saudi Press Agency reported.
The kingdom said it aims to become a global hub for conventional energy, renewable energy and their technologies within the next 10 years.
The deals follow the recent announcement by Saudi Arabia of its plans to plant 50 billion trees across the Middle East, as part of a strategy to confront climate change.
Under the Middle East Green Initiative, the kingdom will coordinate with neighbouring states and regional allies to plant 40 billion trees. The remaining 10 billion trees will be planted in Saudi Arabia under the Saudi Green Initiative.
Prince Mohammad bin Salman bin Abdulaziz (pictured above), Crown Prince, Deputy Prime Minister, Minister of Defence, chairman of the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector said: “A few weeks ago… I explained that, as a world-leading oil producer, we are well aware of our share of responsibility in advancing the fight against climate change. In continuation of our leading role in the stability of the energy markets, we will carry on playing the same role to lead in the area renewable energy.”
He added: “This occasion underlines our determination to be leaders in all energy sectors and our endeavour to find the optimal energy mix and promote efficiency in producing and consuming energy. We witness today the launch and operation of Sakaka IPP PV, our first step to utilise renewable energy in the kingdom. And soon, the construction of the Dumat Al-Jandal wind energy project will also be completed.”
“More renewable energy projects will follow across the Kingdom, which we will announce when the time comes,” he also said in comments published by Saudi Press Agency.
“These projects, along with other renewable energy projects, which are being developed across the kingdom, constitute essential elements of our plans that seek to optimise the energy mix used to produce electricity.”
So far, Saudi Arabia has been slow to move away from fossil fuels in favor of clean energy. By way of comparison, the UK had over 38 gigawatts of wind and solar installed by the end of last year, compared to less than 1 gigawatt of all renewable power in Saudi Arabia currently.
Separately, the Public Investment Fund (PIF) announced a power purchase agreement has been with the Saudi Power Procurement Company for 25 years for its Sudair Solar PV plant in Sudair Industrial City.
The project’s initial commissioning is expected during the second half of 2022 and it is set to become one of the largest single-contracted solar PV plants in the world and the largest of its kind in Saudi Arabia at an installed capacity of 1,500MW.
With an investment value of approximately SR3.4 billion, it will be capable of powering 185,000 homes and offsetting nearly 2.9 million tons of emissions per year.
The PIF-backed consortium is led by ACWA Power, in which PIF holds a 50 percent stake, which has partnered with Badeel, a 100 percent-owned PIF portfolio company.
Yasir Al-Rumayyan (pictured above), governor of PIF, said: “The Sudair Solar PV plant and the signing of this important agreement embody PIF’s commitment to invest in sectors that will shape the future of the global economy. The renewable energy sector is a critical sector that provides sustainable solutions against the challenges of climate change, through developing projects aimed at reducing carbon emissions.”
Mohammad Abunayyan, chairman, ACWA Power, added: “With the world having reached a critical juncture in developing solutions to urgently address climate change, Saudi Arabia is proud of its leading role in driving the energy transition effort.
“As the first project under the PIF renewables programme, the Sudair Solar PV plant holds special significance, marking the advancement of the journey towards a sustainable economy.”
The announcement comes as part of the PIF Strategy 2021-2025, which focuses on unlocking the capabilities of promising sectors to enhance the kingdom’s efforts in diversifying revenue sources.
PIF and its subsidiaries aim to contribute SR1.2 trillion to non-oil GDP cumulatively by the end of 2025 by activating growth opportunities and it has identified utilities and renewables as one of the 13 strategic sectors in its strategy.
In January, Energy Minister Prince Abdulaziz bin Salman said Saudi Arabia wants to emulate Germany’s success with renewable energy and be a pioneer in hydrogen production.
“We will be another Germany when it comes to renewables,” he said on a panel at the Future Investment Initiative conference in Riyadh.
The kingdom is working with many countries on green and blue hydrogen projects and those to capture carbon emissions, he said.
Prince Abdulaziz said Saudi Arabia plans to convert half its power sector to gas, while the remainder would be fuelled by renewable energy. Presently, the kingdom burns plenty of oil in its power plants.
Follow us on
