Saudi Arabia to Develop 5,300 MW of Solar and Wind Energy Capacity

Saudi Arabia has announced plans to develop 5,300 megawatts (MW) of solar and wind energy capacity under the seventh round of its National Renewable Energy Program (NREP).

Floats initial tender

The Saudi Power Procurement Company (SPPC), under the supervision of the Ministry of Energy, issued a request for qualification (RfQ) for the projects, the company said Tuesday (September 16th) in a social media post.

The initiative aims to boost renewable energy use, achieve the country’s optimal electricity mix, and reduce dependence on liquid fuels for power generation.

There are four planned solar photovoltaic (PV) projects: Tabrjal 2 independent power project (IPP) in Al Jouf region (1,400 MW), Mawqaq IPP in the Hail region (600 MW), Tathleeth IPP in Aseer region (600 MW), and South Al-Ula IPP in Madinah region (500 MW).

Similarly, the wind energy projects are Bilghah (1,300 MW) and Shgram (900 MW).

As the kingdom’s principal power buyer, the SPPC is responsible for feasibility studies, tendering, and signing purchase agreements with developers, according to the state-run Saudi Press Agency (SPA).

Big numbers

So far, the SPPC has launched renewable power generation projects totaling over 43 GW, with signed PPAs covering 38 GW of that capacity. By the end of 2024, Saudi Arabia had commissioned 10 renewable projects with a combined capacity of 6,551 MW, according to official figures.

Growing renewable portfolio

In July this year, a consortium led by utility giant ACWA Power signed power purchase agreements (PPAs) for developing renewable energy projects totaling 15 gigawatts (GW) in capacity, with estimated investments of $8.3 billion.

Similarly, a group comprising TotalEnergies and Saudi developer Aljomaih Energy and Water Company (AEW) in December 2024 signed a 25-year PPA with the SPPC for the planned 300 MW Rabigh 2 solar power project.

In June 2024, the SPPC and Saudi-based ACWA Power signed power purchase agreements worth $3.3 billion for developing three solar energy projects with a total capacity of 5,500 MW.