Saudi Arabia has awarded 4,500 megawatts (MW) of new solar and wind power projects valued at more than 9 billion Saudi riyals ($2.4 billion) under the sixth phase of its National Renewable Energy Program, the Ministry of Energy said on Thursday.
The announcement was made in the presence of Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, the minister of energy and chairman of the Saudi Power Procurement Company (SPPC), which oversees project development, tendering and power purchase agreements.
Among the awards, the 1,500MW Dawadmi wind project in Riyadh Province achieved a world record-low levelised cost of electricity (LCOE) of 1.33803 U.S. cents per kilowatt-hour, according to the ministry. The project was awarded to a consortium of Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy, and Etihad Water and Electricity Company.
In the solar segment, Masdar secured two projects, including the 1,400MW Najran solar plant, which posted the world’s second-lowest solar LCOE at 1.09682 U.S. cents per kWh, following the record set by the Shuaiba 1 project. Masdar also won the 600MW Ad Darb solar project in Jazan Province at 1.36070 U.S. cents per kWh.
A consortium of Saudi Electricity Company and EDF Power Solutions International won the 600MW Samtah solar project, also in Jazan Province, at 1.48678 U.S. cents per kWh. Meanwhile, Al Jomaih Energy & Water Company and TotalEnergies Renewables secured the 400MW As Sufun project in Hail Province at 1.50686 U.S. cents per kWh.
The Ministry of Energy said the tenders demonstrate the Kingdom’s leadership in driving competitive renewable pricing through robust financial and regulatory frameworks.
“These results reflect the confidence of global investors in the Saudi energy market and the Kingdom’s commitment to advancing clean energy development,” the ministry said in a statement.
Saudi Arabia’s renewable energy pipeline has now reached 43.2GW of awarded capacity, with 12.3GW already connected to the grid. The ministry said total capacity under tender is expected to reach 64GW by the end of 2025 as part of efforts to diversify the country’s energy mix.
