New dawn on KSA energy sector as solar set to lead the way
Launch of Sakaka IPP PV, signing of PPAs for seven new projects are the result of new directives to develop the Saudi economy
Crown Prince Mohammed bin Salman announced the opening of the Sakaka solar power plant and the signing of a power purchase agreement (PPA) for seven new solar projects throughout the Kingdom to utilize renewable energy.
As a world-leading oil producer, Saudi Arabia is aiming to achieve a 50 percent share between gas and renewable energy by the end of the decade in accordance with the Vision 2030 reform plans and its renewable energy initiatives.
The crown prince said: “This occasion underlines our determination to be leaders in all energy sectors and our endeavor to find the optimal energy mix and promote efficiency in producing and consuming energy. We witness today the launch and operation of Sakaka IPP PV, our first step to utilize renewable energy in the Kingdom. And soon, the construction of the Dumat Al-Jandal wind energy project will also be completed.”
He added that the output capacity of these projects, in addition to the projects of Sakaka and Dumat Al-Jandal, will amount to more than 3,600 MW. They will also power more than 600,000 households and reduce greenhouse gas emissions by over 7 million tons.
“Some of these projects have set new world records for the lowest cost of solar-produced electricity. The Shuaibah project’s cost of electricity is 1.04 US cents per kWh. More renewable energy projects will follow across the Kingdom, which we will announce when the time comes,” he said.
The Kingdom is launching plans
to optimize the energy mix used for producing electricity, and to substitute gas with renewable energy for around 1 million BOEs (barrel oil equivalents) of liquid gas per day. The energy mix will be cost-effective, more efficient and will protect and preserve the environment. “The projects we celebrate today reflect the Kingdom’s efforts that seek to nationalize the renewable energy sector, promote the local content in it, and enable the manufacturing of the components of solar and wind energy production locally, allowing the Kingdom, within the next 10 years, to become a global hub for conventional energy, renewable energy, and their technologies.”
The crown prince said “the Green Saudi and Green Middle East initiatives, in addition to the projects we are launching today, represent substantive parts of our leadership role towards shared international issues, and a complement to the efforts made by the Kingdom during its presidency of the G20 Summit, resulting in the group’s adoption of the concept of the circular carbon economy, which contributes to accelerating the rebalancing of greenhouse gas emissions.”
He concluded: “These projects enhance our renewable energy record and also add to the standing we already enjoy in the energy sector in general.”