Saudi Arabia has taken a significant step toward clean energy by signing seven major agreements to develop solar and wind energy projects with a total capacity of 15,000 megawatts (MW). The investment for these projects is estimated at SR31 billion ($8.3 billion). These agreements are part of the National Renewable Energy Program, led by the Ministry of Energy, and are intended to diversify the Kingdom’s energy mix.

Who’s Involved in the Projects

The signing took place in the presence of Prince Abdulaziz bin Salman, the Minister of Energy. A consortium led by ACWA Power will serve as the main developer. It is partnering with Badeel, a company fully owned by the Public Investment Fund (PIF), and Aramco Power, the energy arm of Aramco. These partnerships underscore the Kingdom’s focus on involving both public and private entities in its clean energy transition.

Solar Projects Across Key Regions

Five of the seven new projects are based on solar photovoltaic technology, spread across several key regions:

• Bisha (Asir Region): 3,000 MW
• Al-Humaij (Madinah): 3,000 MW
• Khulais (Makkah): 2,000 MW
• Afif 1 (Riyadh): 2,000 MW
• Afif 2 (Riyadh): 2,000 MW

The production costs for these solar plants are among the lowest in the world, ranging between 4.72 to 5.10 halalas per kilowatt-hour.

Expansion into Wind Energy

In addition to solar, the Kingdom is also investing in wind power. Two major wind projects have been signed:

• Satara (Riyadh): 2,000 MW at 7.71 halalas/kWh
• Shaqra (Riyadh): 1,000 MW at 6.99 halalas/kWh

These wind projects reflect Saudi Arabia’s strategy to balance different forms of renewable energy to meet its growing electricity demand sustainably.

Global Leadership in Clean Energy Costs

The simultaneous launch of these large-scale projects positions Saudi Arabia among the world’s leaders in renewable energy development. It also highlights the Kingdom’s ability to deliver electricity at some of the lowest generation costs globally. This achievement is made possible through efficient financing models and strong investor trust in the Saudi business landscape.

Role of SPPC and Future Outlook

The Saudi Power Procurement Company (SPPC) is playing a central role by overseeing project studies, managing tenders, and signing power purchase agreements. So far, SPPC has tendered a total of 43,213 MW of renewable energy. Out of this, 38.7 GW has already been contracted, and 10.2 GW is currently connected to the national grid.

Looking ahead, Saudi Arabia aims to expand this connected capacity to 12.7 GW by the end of 2025 and 20 GW by 2026, reinforcing its long-term commitment to a sustainable energy future.