The Saudi Power Procurement Company (SPPC) has signed power purchase agreements (PPAs) for three solar photovoltaic (PV) projects with a capacity of 5.5GW in Saudi Arabia, Zawya has reported.

The PPAs were signed with a consortium comprising Acwa Power, Badeel—a subsidiary of the Public Investment Fund, and Aramco Power, a Saudi Aramco subsidiary.

The projects include Haden Solar PV and Al-Muwaih Solar PV, both situated in Makkah Province with capacities of 2GW each, and Al-Khushaybi PV in Qassim province, boasting a 1.5GW capacity.

Haden Solar PV project offers a levelised cost of electricity (LCOE) of 1.58762 cents/kilowatt hours (kWh), while Al-Muwaih Solar PV's LCOE stands at 1.60852 cents/kWh. Al-Khushaybi PV's LCOE is slightly higher at 1.67289 cents/kWh.

The new projects are components of the National Renewable Energy Programme, managed by the Energy Ministry.

Saudi Arabia plans to tender new renewable energy projects with a total capacity of 20GW annually from 2024.  

The goal is to achieve between 100GW and 130GW by 2030, contingent on the growth of electricity demand.

The renewables programme has so far awarded 21 projects with a total capacity of 19GW, including the newly signed agreements.

The current status of these projects is diverse: seven projects with a 4.1GW capacity are grid-connected, eight projects totalling 8.2GW are under construction, and six projects with a 7GW capacity are nearing financial closure.

Since the beginning of 2024, six new renewable energy projects have been tendered, contributing a total capacity of 6.7GW.

SPPC also announced plans to tender additional capacities during 2024 to meet the 20GW annual target.