Arab News, Wed, May 22, 2024 | Dhu al-Qadah 14, 1445
Saudi Power Procurement Co. signs two power purchase agreements with Japan’s Marubeni
Saudi Arabia:
The Saudi Power Procurement Co. signed two power purchase agreements with a
consortium led by Japan’s Marubeni Corporation on Tuesday in Tokyo.
The deals are part of the fourth phase of Saudi
Arabia’s National Renewable Energy Program, supervised by the Ministry of
Energy.
Prince Abdulaziz bin Salman Al Saud, Saudi
Minister of Energy and Japan’s Minister of Economy, Trade and Industry SAITO Ken
were present at the signing.
The agreements pertain to the Al-Ghat wind power
project, with a capacity of 600 MW, and the Waad Al-Shamal wind power project,
with a capacity of 500 MW. These agreements were signed during the Saudi-Japan
Vision 2030 Business Forum, held in Japan on Tuesday.
On this occasion, Prince Abdulaziz bin Salman Al
Saud, Saudi Minister of Energy, expressed his gratitude to King Salman bin
Abdulaziz Al Saud, and to Crown Prince Mohammed bin Salman bin Abdulaziz Al
Saud, Chairman of the Supreme Committee for Energy, for the support, assistance
and follow-up provided by the leadership, which aids the Ministry of Energy and
its system in achieving the goals of Saudi Vision 2030 in the energy sector.
Prince Abdulaziz stated: “I am pleased to announce
that the Al-Ghat project has set a new world record for the lowest cost of
electricity production from wind energy, with a cost of 1.56558 US cents per
kilowatt-hour, equivalent to 5.87094 halalas per kilowatt-hour. The Waad
Al-Shamal project achieved the second-best global record in this field, with a
cost of 1.70187 US cents per kilowatt-hour, equivalent to 6.38201 halalas per
kilowatt-hour.”
The minister added: “The annual energy produced by
both projects will be sufficient for the consumption of 257,000 residential
units, demonstrating the significant success of these projects in enhancing
energy efficiency in the Kingdom.”
He noted that these projects are part of the
objectives of the National Renewable Energy Program, which aims to utilize
renewable energy sources available throughout the Kingdom to contribute to
displacing liquid fuels used in the electricity production sector and achieving
the optimal energy mix for electricity generation, with renewable energy sources
expected to account for about 50% of the mix by 2030.