Masdar, EDF Renewables and Nesma have signed a power purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop the 1100MW Al Henakiyah solar power plant.
The estimated $1bn project is expected to reach financial close in early 2024 and connect to the grid in 2025.
The SPPC awarded the consortium the project after it submitted the most cost-competitive bid of $16.84 per megawatt hour.
With plans to boost the local economy, at least 19% of the equipment, materials and services will be provided by Saudi companies during the construction phase.
In addition, during the first 10 years of operations, Saudi nationals will make up 50% of the project’s workforce.
This proportion will rise to 75% during the project’s entire operational life.
Al Henakiyah Solar Plant, in Al Madinah province, Saudi Arabia, will help to achieve the target of increasing the share of the renewables in the country’s energy mix to around 50% by 2030.
Set to be one of the world’s largest single-site solar plants, the project will be developed, built, owned and operated by the consortium as part of a 25-year agreement with the off-taker SPPC.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “Masdar is proud to have won the bid to develop the 1100MW Al Henakiyah Solar Plant, further strengthening our partnership with Saudi Arabia.
“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.”