Al-dawadmi: In the presence of Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, Minister of Energy and Chairman of the Board of Directors of the Saudi Power Procurement Company (Principal Buyer), a new project for electricity generation from wind energy and four new projects for electricity generation from solar energy were awarded.

According to Saudi Press Agency, the Dawadmi Wind Energy Project achieved a new world record for the lowest cost of electricity generation from wind power. Meanwhile, the Najran Solar Energy Project recorded the world’s second-lowest cost of electricity generation from solar energy, following the Shuaiba 1 Project, which had previously set the global record for solar energy cost-efficiency.

The total capacity of the five projects amounts to 4,500 megawatts, with total investments exceeding 9 billion Saudi riyals (approximately US2.4 billion). These project awards are part of the sixth phase of the National Renewable Energy Program, supervised by the Ministry of Energy.

Round six projects include the Dawadmi Wind IPP Plant in Riyadh Province, with a capacity of 1,500 MW. This project was awarded to a consortium comprising Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy Company Ltd., and Etihad Water and Electricity Company PJSC (EtihadWE). It has achieved a Levelized Cost of Electricity (LCOE) of 1.33803 cent/kWh (5.01760 Halala/kWh), setting a new world record for wind power generation.

The Najran Solar Energy Project, located in the Najran region, is being developed in partnership with Abu Dhabi Future Energy Company (Masdar). It boasts a capacity of 1,400 MW and an LCOE of 4.11307 halalas per kWh, equivalent to 1.09682 US cents per kWh, marking the second-lowest new world record for solar energy costs.

Additional projects include the Ad Darb Solar PV IPP Plant in Jazan Province, awarded to Masdar with a capacity of 600 MW and an LCOE of 1.36070 cent/kWh (5.10262 Halala/kWh). The Samtah Solar PV IPP Plant, also in Jazan, with a capacity of 600 MW, was awarded to a consortium including Saudi Electricity Company (SEC) and EDF POWER SOLUTIONS INTERNATIONAL SAS, achieving an LCOE of 1.48678 cent/kWh (5.57544 Halala/kWh). Finally, the As Sufun Solar PV IPP Plant in Hail Province, with a capacity of 400 MW, was awarded to a consortium comprising Al Jomaih Energy and Water Company (AEW) holding and TotalEnergies Renewables SAS, achieving an LCOE of 1.50686 cent/kWh (5.65074 Halala/kWh).

These initiatives underscore Saudi Arabia’s leadership in renewable energy development, achieving globally competitive electricity costs. The country’s strategic financing and development models, along with a robust investment environment, contribute to these successes.

The Principal Buyer plays a crucial role in conducting predevelopment studies, tendering power generation projects, and signing Power Purchase Agreements with developers. By the end of 2025, the total renewable energy generation capacity tendered will reach 64 GW, with the current signed capacity at 43.2 GW, and 12.3 GW already connected to the grid.