RIYADH — Saudi Arabia has signed seven new agreements to purchase electricity from solar and wind energy projects with a total capacity of 15,000 megawatts, backed by investments estimated at SR31 billion ($8.3 billion). The deals are part of the Kingdom's National Renewable Energy Program, supervised by the Ministry of Energy. The agreements were signed in the presence of Minister of Energy Prince Abdulaziz bin Salman with a consortium led by ACWA Power as the main developer, in partnership with Badeel, a company owned by the Public Investment Fund (PIF), and Aramco's energy arm, Aramco Power. The solar photovoltaic projects include: * Bisha (Asir Region) — 3,000 MW * Al-Humaij (Madinah) — 3,000 MW * Khulais (Makkah) — 2,000 MW * Afif 1 and 2 (Riyadh) — 2,000 MW each Production costs for these solar projects ranged from 4.72 to 5.10 halalas per kilowatt-hour. The wind energy projects are: * Satara (Riyadh) — 2,000 MW at 7.71 halalas/kWh * Shaqra (Riyadh) — 1,000 MW at 6.99 halalas/kWh The simultaneous signing of these large-scale projects — among the biggest globally — reaffirms Saudi Arabia's leadership in renewable energy and its capability to achieve some of the world's lowest electricity generation costs. This is attributed to efficient financing models and strong investor confidence in the Kingdom's business environment. The Saudi Power Procurement Company (SPPC), which serves as the principal buyer, is responsible for project studies, tenders, and signing power purchase agreements with developers. To date, SPPC has tendered 43,213 MW of renewable energy capacity. Of this, 38.7 GW has already been contracted, with 10.2 GW connected to the grid. The connected capacity is expected to reach 12.7 GW by the end of 2025, and 20 GW by 2026.
