Public Investments announces that Aramco has joined the Sudair Renewable Energy Project Alliance
Saudi ACWA Power announced its success in achieving the financial closure of the Sudair Solar Energy Project, which has a production capacity of 1,500 megawatts, as part of the Public Investment Fund's Renewable Energy Program.
ACWA Power revealed that Sabco, the company wholly owned by Saudi Aramco, has joined the alliance with ACWA Power and BADIL, the company wholly owned by the Public Investment Fund, noting that the alliance led by ACWA Power embodies the strategic importance of the Sudair Energy Project. Solar, which comes within the program of the Public Investment Fund for Renewable Energy, which aims to continue Saudi Arabia’s efforts to transform and diversify the energy sector, and provide 70 percent of the Kingdom’s renewable energy productivity within the National Renewable Energy Program.
ACWA Power will own a 35 percent stake, BADIL will own a 35 percent stake, and Saudi Aramco will own a 30 percent stake in the Sudair First Renewable Energy Company, which was established for the project. It is worth noting that the Public Investment Fund is a shareholder in ACWA Power with a 50 percent stake.
The company said that Saudi Aramco’s investment in the Sudair solar power plant project is its first participation with the Public Investment Fund in achieving the fund’s renewable energy program, and reflects the company’s efforts to develop sustainable energy solutions in its operations and inside Saudi Arabia, through the deployment of a variety of low-carbon energy solutions. .
The Sudair solar project was announced at the inauguration of the Sakaka solar energy plant in April of this year under the patronage of Prince Muhammad bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and Chairman of the Higher Committee for Energy Mix Affairs for Electricity Production and Empowerment. The renewable energy sector, in the presence of Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy.
The site of the Sudair plant project was chosen and the engineering works and preliminary studies were carried out by a Saudi technical team specialized in the Ministry of Energy, with the aim of achieving the highest possible quality of electrical energy production, and contributing to shaping the features of the circular carbon economy, which Saudi Arabia adopted and supported during its presidency of the Group of Twenty last year. , an indication of the Kingdom’s continuity of efforts to contribute to reducing emissions from the energy sector in the Kingdom.
The Ministry of Energy, through its Renewable Energy Program and its Local Content Development Program, supports and enables the building of this promising sector and its supply chains, through various initiatives such as mobilizing private sector investments and encouraging partnerships between the public and private sectors, to create a competitive national market for renewable energy.
“A power sale agreement has been signed with the Saudi Energy Procurement Company for a period of 25 years,” Saudi ACWA Power said. The Sudair Solar Project also recorded a tariff price for producing electricity from solar energy, which is among the lowest in the world.
By using dual-phase units equipped with tracking technology, the plant will provide the highest level of performance efficiency, allowing it to meet the energy needs of 185,000 housing units, and reduce about 2.9 million tons of carbon emissions annually.
Mohammed Abunayan, Chairman of ACWA Power, said: “As we continue our ambition to lead the transformation of the energy sector in Saudi Arabia with determination and steadfastness, I cannot express how proud and happy I am at signing the agreements for the first projects of the Public Investment Fund for Renewable Energy, to achieve the vision’s goals. 2030 and the requirements of the National Renewable Energy Program launched by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, guided by the directives of Crown Prince Mohammed bin Salman bin Abdulaziz, and with the unlimited support of Prince Abdulaziz bin Salman bin Abdulaziz, Minister of Energy, to achieve this ambitious path. .
Abu Nyan noted that the implementation of the Sudair Solar Energy Project will constitute a qualitative addition in the process of diversifying the optimal energy mix and accelerating the transformation process in the energy sector in the Kingdom, in addition to transferring the knowledge, experience and capabilities of ACWA Power in the global renewable sector to the Kingdom, in addition to that the project will stimulate Local Saudi companies to participate in the implementation of renewable energy projects, and will enable the young Saudi talents and competencies needed by this promising sector, which has become one of the pillars of sustainable social and economic development in Saudi Arabia.
Abunayan added, “The Sudair Solar Energy Project is a testament to the leadership and insightful vision enjoyed by the Public Investment Fund towards the renewable energy sector, especially as the project embraces a wide spectrum of stakeholders to create a tangible impact by adopting an integrated approach of strong public-private partnerships. As a fundamental pillar of the Saudi Vision 2030, we are also honored to work hand in hand with major national institutions in the Kingdom, including the Public Investment Fund, Aramco and a group of leading local and international financial institutions, to achieve the largest solar power plant in Saudi Arabia.”
For his part, Yazid Al-Humayd, Deputy Governor and Head of the General Department for Middle East and North Africa Investments at the Public Investment Fund, said: “We are pleased with this agreement, which includes an important strategic alliance of elite companies that possess expertise and knowledge, which confirms Saudi Arabia’s capabilities in promoting the growth of the renewable energy sector. And to provide sustainable solutions in facing the challenges of climate change, and the project is an important step within the renewable energy program of the Public Investment Fund, through its commitment to developing 70 percent of the country’s renewable energy generation capacity by 2030 in line with the goals of the Kingdom’s ambitious vision.
He added, “The Sudair Solar Energy Project will contribute to supporting the Green Saudi Initiative, which aims to chart the country and the region’s direction in protecting natural resources, and put them on a road map that will contribute significantly to unifying efforts in the region and achieving global goals to confront climate change.”
In a related context, Mohammed Al-Qahtani, senior vice president of refining at Aramco, said: “Our participation in the Sudair solar plant project reflects our firm commitment to developing sustainable energy solutions, both at the level of our operations and at the level of the energy network in general. And while the hydrocarbons sector will continue to be a vital part of the energy mix for decades to come, renewables, such as solar energy, will have an important role in helping to achieve the world’s climate-related goals. The Sudair project will support Saudi Arabia’s ambition to generate part of its energy needs from renewable sources by 2030, as one of the many options Aramco is exploring in the field of low-carbon energy.”
It is noteworthy that the engineering, procurement and construction agreement for the Sudair solar power plant was signed with Larsen & Toubro in April of this year. The first phase of the project is expected to start producing electricity during the second half of 2022, and to contribute to the realization of the Green Saudi Initiative.
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