Saudi Arabia awards ACWA Power the first utility-scale renewable energy project

ACWASaudiACWA Power, developer and operator of power generation and desalination water plants in 11 countries including Saudi Arabia, has won Skaka IPP PV solar project, the first utility-scale renewable energy plant in the kingdom

This plant is the first of what will be a series of procurement within the ambitious Saudi national renewables program aiming to produce 9.5 GW of renewable energy by 2023 as a first phase. The 25-year power purchase contract was awarded for ACWA Power at a new world record tariff of US$2.34/kWh.

Located in Al Jouf at a site spanning over six square km, Skaka plant of an investment value of US$256mn will generate 300MW.

Mohammad Abdullah Abunayyan, chairman of ACWA Power, said, “We are proud to have set yet another world record tariff for PV power, now at home and are humbled to be entrusted with the first utility-scale renewable energy plant to be developed in the kingdom, which will be the foundation of the visionary ambitious national program that seeks to maximise the utilisation of renewable energy sources, as defined by the National Transition Plan 2020 and the objectives of the Saudi Vision 2030.”

Abunayyan added that winning the Skaka solar project in the kingdom continues our record of successes and achievements in developing and implementing pioneering projects in the renewable energy sector in the UAE, Jordan, Egypt, Morocco and South Africa. “This new project allows ACWA Power to bring to the kingdom our considerable expertise and capabilities to ensure the delivery of this first renewable energy project at the highest global standards of quality and efficiency,” Abunayyan noted.

Paddy Padmanathan, president and CEO of ACWA Power said, “We are very excited to have won this project, through such a rigorous transparent process at a new world record tariff as it will set the foundation for a robust and competitive market for renewable energy in the kingdom, thus enabling Saudi Arabia to take advantage of all intrinsic valuable ingredients available to become a global hub for research, development, manufacture and investment in the rapidly transforming energy sector which is pivoting to increase the renewable energy content in the fuel mix of power generation.”

Saudi Arabia’s Ministry of Energy, Industry and Mineral Resources selected ACWA Power as the most competitive compliant offer from submissions made by consortiums of eight local and international bidders, according to the company.

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