Saudi Power Procurement Company Awards Contract for US$100 Million Solar Plant

Following the Saudi Arabia – Ministry of Energy’s introduction of the third round of Public Renewable tenders, ARE (Altaaqa Renewables– a Zahid Group company) has announced financial close for the development of a 119 MWp Photovoltaic Independent Power Plant (PV Plant) in Wadi ad-Dawasir.

The project is being developed with ARE's Consortium partners TotalEnergies and Toyota Tsusho Corporation.

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The Consortium will finance, build, own and operate the PV plant (to be built at a cost of US$100 million) that will generate renewable energy for the Kingdom’s Central Region. This follows the Consortium being awarded the project by the Saudi Power Procurement Company.

With the Kingdom’s impressive natural potential for solar power and through strategic investments in sustainable technologies, solar energy projects are being launched to diversify energy resources and optimize the Kingdom’s energy mix.

The $100 million project is being set up by Toyota Tsusho through a joint venture company, Noor Alwadi Renewable Energy Company, in which both the Japanese group and TotalEnergies Renewables each have a 40% stake, while Altaaqa Renewable Energy has the rest of 20%.

Currently there are renewable energy projects in advanced stages, which, once complete, will generate more than 4,500 MWp, powering over 650,000 homes across the Kingdom.

By 2030, renewable energy will contribute 50% of the overall energy mix. Renewable energy projects are the key drivers towards achieving sustainability.

Mr Majid T. Zahid, Group President – Energy at Zahid Group, commented: “with sustainability being at the heart of Saudi Arabia’s Vision 2030, and with the Kingdom aiming to reach Net Zero by 2060, the country is experiencing an incredibly rapid and dynamic energy transition."

Mr Zahid added: “Altaaqa Renewables (ARE) was established as part of our Group’s commitment to actively participate in supporting our Kingdom achieve its sustainable initiatives.

"We are delighted to have achieved financial close on this exciting utility-scale renewable energy project and look forward to building the project in the months to come. A significant step in cementing our commitment towards the Kingdom’s Vision 2030 and its sustainability targets.”

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