Saudi Arabia signs 1,100 MW of PPAs at "record low" price for wind

Saudi Arabia has signed two power purchase agreements (PPAs) with a consortium led by Japan's MARUBENI Corp. (TYO:8002) for 1,100 MW of wind energy capacity, claiming that it has achieved a world "record low" price for wind energy at USD 15.65 (EUR 14.35) per MWh.

The Saudi Power Procurement Company (SPPC), the Kingdom's sole electricity buyer from independent power producers, signed the deals during the Saudi-Japan Vision 2030 Business Forum. These agreements cover the 600-MW AlGhat and 500-MW Wa'ad Alshamal wind projects.

The levelised cost of electricity (LCOE) for AlGat is USD 15.655 per MWh, which SPPC claims is the lowest price ever achieved for wind energy globally. The Wa'ad Alshamal project has also set a second world record low for wind power at USD 17.018 per MWh, energy minister Abdulaziz bin Salman al-Saud said on Tuesday.

When operational, the two wind farms are expected to supply enough power to cover the consumption of 257,000 residential units per year.

The two projects are part of Round 4 of the Saudi National Renewable Energy Program (NREP). The world's top crude oil exporter aims to raise the share of renewables in its energy mix to about 50% by 2030.

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