Saudi Arabia signs agreements for seven new solar projects -SPA

LONDON: Saudi Arabia has signed power purchase agreements with seven new solar projects that will provide electricity more than 600,000 households, state news agency SPA quoted Crown Prince Mohammed bin Salman as saying on Thursday.

The new projects, in addition to the new Sakaka solar and the Dumat al-Jandal wind projects, will have a more than 3,600 megawatt capacity, he added.

Sakaka, Saudi Arabia's first renewables project, was launched on Thursday. The scheme developed by Acwa Power, a company co-owned by Saudi Arabia's sovereign wealth fund, has a 300 MW capacity.

"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," the Crown Prince said.

The plan was to produce half the kingdom's electricity with gas and half with renewables by 2030, the Crown Prince said. That this would displace about 1 million barrels of oil equivalent of liquid fuels, he added.

The new projects will be considered independent power producers, the SPA said, with the Saudi Power Procurement Company buying the power they produce under 20-25 year agreements. Some of these projects have set new world records for the lowest cost of solar-produced electricity, the Crown Prince said.

Reuters