The bid to build a 1,100 MW solar power plant in Madinah, Saudi Arabia, has been won by a group of leading global players in clean energy, including Abu Dhabi Future Energy Company (Masdar), French utility giant EDF Renewables, and Saudi infrastructure expert Nesma Company. This announcement was made by the Saudi Power Procurement Company (SPPC). It is anticipated that the $1 billion Al Henakiyah Solar Plant will attain financial close early next year and become grid-connected in 2025.
When fully operational, the Al Henakiyah Solar Plant is anticipated to displace more than 1.8 million tonnes of carbon dioxide yearly and power over 190,000 houses annually in the Saudi city. It will contribute to reaching the goal of having about 50% of the nation’s energy coming from renewable sources by 2030.
Masdar CEO Mohamed Jameel Al Ramahi said: “We are proud to have won the bid to develop the 1,100 MW Al Henakiyah Solar Plant, further strengthening our partnership with Saudi Arabia. The Kingdom is a key strategic market for Masdar, and we are committed to supporting the Ministry of Energy and the SPPC to achieve the targets set out under Vision 2030 and the Saudi Green Initiative, as the country accelerates its green transition toward net zero emissions by 2060.”
Madinah’s Al Henakiyah solar plant will power more than 190,000 homes per year and significantly boost Saudi’s renewables mix
As part of a 25-year contract with the off-taker SPPC, the consortium will design, construct, own, and operate the project, which is expected to be among the biggest single-site solar plants in the world.
In addition, SPCC and the winning consortium have signed a power purchase agreement (PPA). The consortium won the contract by offering the most affordable proposal of $16.84 per megawatt hour.
The consortium will design, construct, own, and operate the project
According to a statement from SPCC, at least 19% of the tools, supplies, and labor used during the building phase would come from Saudi businesses as part of initiatives to strengthen the local economy. Furthermore, half of the project’s workers will be Saudi nationals for the first 10 years of operation. Over the course of the project’s operation, this percentage will increase to 75%.
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