[ad_1]
This is Aramco’s first investment in PIF’s renewable energy program
ACWA Power and PIF hold equal shares of the remainder of Sudair’s solar photovoltaic project
Aramco assesses investments in renewable projects with partners
Saudi Aramco is investing, alongside the country’s sovereign wealth fund and Riyadh-based ACWA Power, in the oil exporter’s largest solar project with a capacity of 1.5 GW while the world’s largest energy company embarks on renewable energies.
Not registered?
Receive daily email alerts, subscriber notes and personalize your experience.
Register now
Saudi Aramco Power Co., a unit of the parent company, joined ACWA Power and Water & Electricity Holding Co., or Badeel, owned by the Public Investment Fund, by acquiring a 30% stake in the company ad hoc Sudair One Renewable Energy Co., ACWA Power said in an Aug. 15 statement. ACWA Power and PIF will each hold a 35% interest. ACWA Power is 50% owned by PIF.
The $ 907 million Sudair solar PV plant is the first project in PIF’s renewable energy program which aims to support Saudi Arabia’s energy transition and contribute 70% of the country’s renewable energy under of the national renewable energy program, ACWA added. This is Aramco’s first investment in the program.
“While hydrocarbons will continue to be an essential part of the energy mix for decades to come, renewables like solar have an important role to play in helping to meet global climate goals,” said Mohammed Al Qahtani, vice-president. -Senior chairman of downstream at Aramco, said in the statement. “Sudair will support Saudi Arabia’s ambition to generate part of the country’s energy needs from renewable energy by 2030, and is one of the many low-carbon energy options being deployed by Aramco.”
Renewable energy partnership
Aramco is evaluating potential projects with partners to invest in renewable energies. the company said in its second quarter earnings report on August 9. The partnership is with ACWA Power and PIF, Aramco CEO Amin Nasser said on a call with analysts on Aug. 9.
A 25-year power purchase agreement for the Sudair plant has been signed with Saudi Power Procurement Co., with the tariff being among the lowest for solar PV projects in the world, ACWA said. The project will be able to supply 185,000 homes, while offsetting nearly 2.9 million mt / year of emissions.
The first phase of the project is expected to start producing electricity in the second half of 2022, ACWA added.
“The historic renewable energy project is a milestone and a key part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy capacity described in Saudi Vision 2030,” said Yazeed Alhumied , Deputy Governor and Head of MENA Investments at PIF, in the statement.
First wind farm
Saudi Arabia’s first wind farm with a capacity of 400 MW has started producing electricity, UAE-based clean energy company Masdar said on August 7, as the largest global oil exporter is seeking to boost its renewable energy projects as part of its energy diversification plans. mix and release the crude used in the electricity sector for export.
Dumat al-Jandal, which is being developed by Masdar and EDF Renewables in France, will power 70,000 Saudi homes when completed, Masdar said on August 7.
In April, Saudi Energy Minister Prince Abdulaziz bin Salman inaugurated the Sakaka IPP photovoltaic project, the kingdom’s first renewable energy project developed by ACWA Power, with a production capacity of 300 MW, as Power purchase agreements were signed for seven solar projects.
The total capacity of all projects, in addition to the two projects of Sakaka and Dumat al-Jandal, is 3.67 GW. They will power more than 600,000 homes and reduce greenhouse gas emissions by more than 7 million tonnes, according to the Department of Energy. All tendered projects are supported by 25-year power purchase agreements with Saudi Power Procurement Co. as the buyer.
Source link
