- Saudi Aramco has acquired a 30% stake in a solar power plant.
- The plant will have a capacity of 1.5GW.
- Development of the power plant is set to commence.
Along with Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) and Riyadh-based ACWA Power, Saudi Aramco is investing in a 1.5GW solar power project. The world’s biggest energy company is set to move into clean energy production. Saudi Aramco Power Co has acquired a 30 per cent stake in the special purpose vehicle Sudair One Renewable Energy Co., ACWA Power and PIF will each hold a 35% stake.
The Sudair solar PV plant is the first project under PIF’s clean energy program that aims to support Saudi Arabia’s energy transition and contribute 70 per cent of the country’s renewable energy under the National Renewable Energy Program, ACWA added. The project will require an investment of $907 million. Mohammed Al Qahtani, senior vice president of downstream at Aramco, stated: “Sudair will support Saudi Arabia’s ambition to generate part of the nation’s power needs from renewable energy by 2030, and is one of several low-carbon energy options being deployed by Aramco.”
Saudi Power Procurement Co. will buy the power from the Sudair solar PV plant under a 25-year power purchase agreement. The agreement tariff is one of the lowest for solar PV projects globally. The project, when completed, will provide energy for 185,000 households reducing emissions by about 2.9 million metric tonnes annually.
According to ACWA Power, the first phase of the project is expected to begin in H2 2022.