ACWA Power and AlGihaz Holding Company have achieved a financial closure for the SAR1.2bn ($319m) utility-scale renewable photovoltaic (PV) energy project, Sakaka PV IPP.
The 300MW Sakaka PV IPP in Saudi Arabia is being developed under the National Renewable Energy Programme executed by Renewable Energy Project Development Office (REPDO).
To PV plant is owned by a newly created company called ‘Sakaka Solar Energy Company (SSEC)’, in which ACWA holds 70% stake and AlGihaz owns a 30% stake through its subsidiary AlGihaz Renewable Energy Company.
SSEC has concluded a 25-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC) acting as the offtaker.
ACWA Power president and CEO Paddy Padmanathan said: “We are excited to commence construction of this first utility scale PV plant in the Kingdom project, which will allow us to utilise the considerable expertise and relationships with technology providers.
“The supply chain we have acquired through the development of 3,000MW of renewable energy projects in five other countries over the last seven years to now deliver at our home not only the lowest tariff for PV power, but also to start establishing a renewable energy industry in the Kingdom, which we believe will become one of the most significant cornerstone to deliver several of the objectives of Vision 2030 of the Kingdom.”
Located in Al Jouf, at a site spanning over 6km2, the Sakaka PV project is expected to create new employment opportunities in fields including construction, operations and maintenance.
The plant will enter commercial operations towards the end of next year.
Once completed, the plant is expected to power more than 75,000 households with green power while offsetting over 430,000t of carbon dioxide per annum.
A consortium of Mahindra Susten and Chint was awarded the engineering, procurement and construction (EPC) contract for the project.
First National Operations & Maintenance Company’s (NOMAC) affiliate Diaa Sakaka Operation and Maintenance Company signed the agreement for the plant.