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A consortium led by the giant power of Saudi public services is to invest $ 8.3 billion to build 15 gigawatts of solar and wind parks in the kingdom as it accelerates its impulse in renewable energies.
Acwa Power, owned by the sovereign of wealth of the country, joins Aramco Power, part of Saudi Aramco, in the consortium that has signed energy purchase agreements with the state electricity buyer to build five solar projects and two windows in four regions throughout the kingdom.
The agreements mark an important step forward in the country’s ambition to generate half of its electricity from renewable sources by 2030 as part of a plan launched by the heir prince Mohammed Bin Salman to diversify the Saudi economy away from its dependence on oil revenues. The world’s largest oil exporter also wants to reduce its carbon dioxide emissions to Net Zero in 2060.
The kingdom had about 4.34 Gigavatos of solar capacity at the end of 2024, according to the latest statistical review of the World Energy Energy Institute, but wants to have up to 130 GW of solar and wind capacity at the end of the decade.
A general rule is that a Gigawatt can provide electricity potentially for approximately 1 mn houses. Almost all the electricity of Saudi Arabia is currently supplied by the electric and gas power plants.
The Saudi government described the agreements as “among the largest in the world” at prices that are “the lowest worldwide,” according to an official statement. He continued to say that they were the result of “the efficiency of the financing and development models of the kingdom and the growing confidence in the kingdom’s investment environment.”
Prince Mohammed, Prince Abdulaziz, who serves as the Minister of Energy, attended the signature ceremony for Riad agreements on Sunday. The Water and Electricity Holding CO, controlled by the Public Investment Fund, is part of the consortium.
Solar energy is growing rapidly in the Middle East thanks to its abundant sun and at the cost of falling solar panels, already measure that Gulf countries seek to release more oil and gas for export.
Financial Times reported in January that, from a low base, the Middle East is the fastest growing region outside China in terms of adding new renewable electricity capacity.
The Central Region of Riad will have two solar and two wind projects, while the remaining solar projects will be in the regions of MECA and Medina, as well as the ASEER province. The projects must be in operation by 2028, according to a joint statement by ACWA Power and Partners.
Acwa Power is one of the largest renewable energy companies in the Middle East, with operations in 14 countries in the region, Africa and Asia. The company has recently announced its entrance to China, since it seeks to expand its footprint despite concerns about commercial tensions with the United States.
“We decided to enter China because it is the largest market in the world in renewable energies.
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