Saudi Arabia has announced the approval of plans to build two solar photovoltaic (PV) facilities, in which the kingdom will invest $2.37 billion.
Plants called Al Shuaiba BV 1 and Al Shuaiba BV 2Located in Makkah province and productive 600 MW and 2,031 GW for the former. This power supplies more electricity 45,000 Saudi families.
The projects will be developed by the Energy Agency Aqua Power; The Water and electricity holding company Or change it (owned by the Saudi Public Investment Fund); And this Saudi Aramco Power Company.
Ownership of the plants will be split between these three companies: Patil 34.99%, Acwa 35.01% and Aramco the remaining 30%. These facilities are expected to be commercially operational by 2025.
In the words Aqua Power CEO Marco Arcelli“Securing funding for this pilot project is an important step towards achieving Saudi Arabia’s clean energy goals, in line with the National Renewable Energy Plan. It aims to produce 50% of electricity from renewable sources by 2030”.
Arabia to be carbon-free by 2060
The Arab world’s largest economy is ramping up the development of several renewable energy projects to boost its clean energy production capacity as the juncture approaches. 2060 carbon neutral target.
In addition to the Al Shuaibah PV 1 and Al Shuaibah PV 2 projects, the Saudi Public Investment Fund is implementing in collaboration with its subsidiary Patil and Aqua Power Company. Five other renewable energy projects with a total capacity of 8 GW and planned investment Over $6 billion.
These projects (Sudair, Al Shuaibah 2, Ar Rass 2, Al Kahfah and Saad 2) will be specifically linked to the local private sector and committed to procure equipment, goods and services through local supply chains.
as Mohammed Al Qahdani, Aramco’s bottom line leaderNoted, “Oil and gas will play an important role in meeting current and future energy demand, Renewables will play an increasingly important role in the energy transition to meet the challenges of climate change. These projects represent an important milestone in achieving Aramco’s decarbonisation goals.
Financing
The Saudi National Development Fund has provided funds to finance the projects $450 million in debt In Saudi Riyals, and A $1.18 billion financing facilityThrough a consortium of local, regional and international banks.
Banks in the consortium include Bank Saudi Franchi, First Abu Dhabi Bank, Mizuho Bank, Riyadh Bank, Saudi National Bank, Standard Chartered Bank and Saudi Investment Bank.
The International Energy Agency predicts that Global investment in renewable energy needs to double to $4 trillion By the end of the current decade to achieve net zero emissions targets by 2050.
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