Saudi Arabia has set an ambitious target to cut carbon emissions and reduce its reliance on oil. As the country accelerates its green transition, Abu Dhabi’s Masdar has teamed up with EDF Renewables and Nesma Company and signed a power purchase agreement with Saudi Power Procurement Company (SPPC) to develop a $1 billion solar plant based in Al Madinah province in the kingdom.
The Al Henakiyah Solar Plant, a 1,100-megawatt project, is expected to annually power 190,000 homes and reduce CO2 emissions by 1.8 million tonnes.
“The kingdom is a key strategic market for Masdar, and we are committed to supporting the Ministry of Energy and the SPPC to achieve the targets set out under Vision 2030 and the Saudi Green Initiative, as the country accelerates its green transition toward net-zero emissions by 2060,” said Mohamed Al Ramahi, Masdar’s chief executive.
The construction phase will see nearly 19% of the resources given by companies in the kingdom.
The solar plant project will also create jobs, with the initial ten years of operations to involve 50% of Saudi citizens, projected to climb to 75% during the project’s operational lifespan.
It will also help to achieve the target of increasing the share of renewables in the country’s energy mix to about 50% by 2030.
“As an industry, we are on an ambitious journey together, and one that will ultimately establish Saudi Arabia as a true global leader in renewable energy generation. This project represents a significant milestone on our way to achieving this,” said Faisal Alturki, president of Nesma Group.
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