Abu Dhabi Future Energy Company PJSC – Masdar, EDF Renewables and Nesma Company have signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop the 1,100 MW Al Henakiyah solar power plant.
Once operational, it is expected that the project will power more than 190 thousand homes per year and displace more than 1.8 million tonnes of carbon dioxide annually.
The estimated US$1 billion project leverages the expertise of global renewables leaders, Masdar and EDF Renewables, and leading Saudi conglomerate Nesma Company.
The Al Henakiyah Solar Plant is expected to reach financial close in early 2024 and connect to the grid in 2025. The SPPC awarded the consortium the project after it submitted the most cost-competitive bid of US$16.84 per megawatt hour.
With plans to boost the local economy, at least 19 percent of the equipment, materials and services will be provided by Saudi companies during the construction phase. In addition, during the first five years of operations, Saudi nationals will make up 50 percent of the project’s workforce. This proportion will rise to 75 percent during the project’s entire operational life.
Al Henakiyah Solar Plant, in Al Madinah province, Saudi Arabia, will help to achieve the target of increasing the share of the renewables in the country’s energy mix to around 50% by 2030. Set to be one of the world’s largest single-site solar plants, the project will be developed, built, owned and operated by the consortium as part of a 25-year agreement with the off-taker SPPC.
