In Short : Masdar, the Abu Dhabi-based renewable energy company, has partnered with EDF Renewables to collaborate on a significant solar project in Saudi Arabia. This joint venture marks a landmark initiative in the country’s renewable energy sector. By combining their expertise, Masdar and EDF Renewables aim to drive the development of solar energy in Saudi Arabia, contributing to the nation’s clean energy goals and promoting sustainable practices in the region.
In Detail : Saudi Arabia’s groundbreaking 1,100 MW Al Henakiyah solar project, led by Masdar, EDF Renewables, and Nesma, advances the nation’s green energy ambitions
In a groundbreaking move towards sustainable energy production, Abu Dhabi Future Energy Company PJSC (Masdar), EDF Renewables, and Nesma Company have officially entered into a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) to undertake the development of the Al Henakiyah solar power plant.
With an estimated project cost of US$1 billion, this endeavor is expected to become one of the world’s largest single-site solar power facilities.
The Al Henakiyah Solar Plant, located in Al Madinah province, Saudi Arabia, is set to be a game-changer in the country’s energy sector. Once operational, it is projected to generate enough electricity to power over 190 thousand homes annually while simultaneously reducing carbon dioxide emissions by over 1.8 million tonnes each year.
This ambitious project represents a collaboration between global leaders in the renewable energy sector, Masdar and EDF Renewables, alongside Saudi conglomerate Nesma Company. The Al Henakiyah Solar Plant is anticipated to reach financial close in early 2024, with plans to connect to the national grid by 2025. The consortium secured this project after submitting the most cost-competitive bid, offering a rate of US$16.84 per megawatt-hour, as determined by the SPPC.
In a bid to boost the local economy, a minimum of 19 percent of equipment, materials, and services during the construction phase will be sourced from Saudi companies. Additionally, during the first decade of operations, 50 percent of the project’s workforce will be comprised of Saudi nationals, increasing to 75 percent over the course of the project’s 25-year agreement with the off-taker SPPC.
The Al Henakiyah Solar Plant aligns perfectly with Saudi Arabia’s objective to increase the share of renewables in its energy mix to around 50% by 2030. This momentous endeavor is a testament to the collaborative efforts of Masdar, EDF Renewables, and Nesma Company in driving the nation’s green transition towards net-zero emissions by 2060.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, expressed pride in securing the project, stating, “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 Chief Executive Officer of EDF Renewables, echoed these sentiments, highlighting the significance of the Henakiyah solar project for Saudi Arabia’s energy landscape. “After the 400 MW 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,” he said.
Faisal Alturki, President of Nesma Group, emphasized the role of Nesma Renewable Energy (NRE) in supporting Saudi Vision 2030’s clean energy and sustainability goals. He expressed pride in NRE’s involvement in the Al Henakiyah Solar Project and its potential to establish Saudi Arabia as a global leader in renewable energy generation.
“The Al Henakiyah Solar Project is a resounding endorsement of our position at the forefront of the renewables industry in Saudi Arabia,” Alturki said. “As an industry, we are on an ambitious journey together, and one that will ultimately establish Saudi Arabia as a true global leader in renewable energy generation. This project represents a significant milestone on our way to achieving this.”
With the Al Henakiyah Solar Plant’s development, Saudi Arabia is taking significant strides toward a greener and more sustainable energy future, setting a precedent for large-scale renewable projects on the global stage.