- The consortium of carbon-free energy leaders – Masdar, EDF Renewables and Nesma Company – sign the Power Purchase Agreement to develop, build and operate the Al Henakiyah solar power plant, with a capacity of 1, 1 GW, after submitting the most competitive offer.
- Located in the province of Al Madinah, the solar power plant will be one of the largest in the world. Once commissioned, it will produce the equivalent of the annual electricity consumption of around 190,000 homes and will avoid the emission of more than 1.8 million tonnes of CO2 each year.
Paris, November 28, 2023: Abu Dhabi Future Energy Company PJSC – Masdar, EDF Renewables and Nesma Company signed the Power Purchase Agreement with Saudi Power Procurement Company (SPPC) to develop a solar power plant of 1.1 GW. Located in the province of Al Madinah in Saudi Arabia, 700 km northwest of Riyadh, the plant will produce, after its commissioning scheduled for 2025, the equivalent of the annual electricity consumption of approximately 190,000 homes and will avoid the emission of more than 1.8 million tonnes of CO2 each year.
Estimated at $1 billion, the project draws on the expertise of major players in renewable energies, Masdar and EDF Renewables, and the leading Saudi conglomerate Nesma Company. It was awarded by the SPPC to the consortium that presented the most competitive offer, namely USD 16.84 per megawatt hour. The plant will be developed, built, owned and operated by the consortium under a 25-year agreement signed with SPPC. The financial closure of the project should occur in early 2024.
To contribute to the local economy, at least 19 % of Al Henakiyah Solar Power Plant equipment, materials and services will be supplied by Saudi companies during the construction phase. In addition, during the first five years of operation, Saudi nationals will represent 25 % of the plant's workforce. This proportion will reach 75% over the entire operating period.
The plant will contribute to the country's objective of increasing the share of renewable energies in the energy mix to around 50% by 2030.
Mohamed Jameel Al Ramahi, Managing Director of Masdar, said: “Masdar is very proud to be developing one of the largest solar power plants in the world with our long-standing partners, EDF Renewables and Nesma Company. This project builds on the consortium's previous successes in the country, including Dumat Al Jandal, the largest operating wind farm in the Middle East, and the South Jeddah solar power plant, with a capacity of 300 MW. The Kingdom of Saudi Arabia is a valued neighbor and key partner for Masdar. It has the ambition and resources necessary to promote decarbonization. Masdar, a leading global renewable energy company, is committed to supporting the Kingdom’s zero-carbon energy goals.”
Bruno Bensasson, Chairman and CEO of EDF Renouvelables and Executive Director of the EDF group in charge of the renewable energies division, declared: “The Al Henakiyah solar project, with a capacity of 1.1 GW, is an important new milestone for EDF Renewables and its partners Masdar and Nesma Renewable Energy in Saudi Arabia. It would not have been possible without the full support of the Saudi Power Procurement Company (SPPC) and the Ministry of Energy. Together, we are committed to supporting Saudi Arabia's Vision 2030 plan, which targets approximately 50 % of renewables in the Kingdom's energy production capacities. Proposing a set of low-carbon solutions, including energy efficiency, renewable energies, nuclear power and carbon capture, is at the heart of EDF's proposal for carbon neutrality. After the 400 MW Dumat al Jandal wind farm, currently in operation, and the South Jeddah solar park with a capacity of 300 MW, the outlook is promising. We are firmly committed to creating long-term value, supporting change in the Kingdom, today and for generations to come.”
Faisal Alturki, Chairman of Nesma Group, said: “Nesma Renewable Energy (NRE), specializing in renewable energy, is an integral part of our commitment to proactively support the clean energy and sustainability goals of Saudi Arabia's Vision 2030 plan. We are therefore extremely proud of the role that NRE will play in delivering the Al Henakiyah Solar Project, a groundbreaking initiative in the Kingdom's renewable energy strategy, and we are confident that the company will have an increasingly more important to play in the future.
“The Al Henakiyah Solar Project is a resounding confirmation of our position at the forefront of Saudi Arabia’s renewable energy industry. As an industrialist, we have embarked together on an ambitious journey that will make Saudi Arabia a true world leader in renewable energy production. This project represents an important step towards achieving this goal. »