Abu Dhabi: Abu Dhabi Future Energy Company PJSC — Masdar, France's EDF unit, EDF Renewables, and Nesma Company have signed a power purchase agreement with the Saudi Power Procurement Company (SPPC) to develop the 1,100MW Al Henakiyah solar power plant.
The Al Henakiyah Solar Plant is expected to reach financial closure in early 2024 and connect to the grid in 2025. The SPPC awarded the consortium the project after it submitted the most cost-competitive bid of $16.84 per megawatt hour.
Once operational, the project is expected to power more than 190,000 homes per year and displace more than 1.8 million tonnes of carbon dioxide emissions annually.
Boost to local economy
With plans to boost the local economy, at least 19 per cent of the equipment, materials and services will be provided by Saudi companies during the construction phase. In addition, during the first 10 years of operations, Saudi nationals will make up 50 per cent of the project’s workforce. This proportion will rise to 75 per cent during the project’s entire operational life.
Al Henakiyah Solar Plant, in Al Madinah province of Saudi Arabia, will help to achieve the target of increasing the share of the renewables in the country’s energy mix to around 50 per cent by 2030. Set to be one of the world’s largest single-site solar plants, the project will be developed, built, owned and operated by the consortium as part of a 25-year agreement with the off-taker SPPC.
Mohamed Jameel Al Ramahi, CEO of Masdar, said in a statement: “The Kingdom is a key strategic market for Masdar, and we are committed to supporting the Ministry of Energy and the SPPC 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.”
Bruno Bensasson, Chairman and CEO of EDF Renewables and EDF Group Senior Executive Vice President, Renewable Energies, said: “After the 400MW Dumat al Jandal wind power farm currently under operation and the 300MW-South Jeddah Solar Park, the journey ahead is promising, and we are wholeheartedly committed to creating lasting value, nurturing a legacy of positive change in the Kingdom and for the generations to come.”