Sudair Solar PV IPP

The Sudair Solar Photovoltaic (PV) Independent Power Plant (IPP) is one of the Kingdom of Saudi Arabia's renewable energy projects, aimed at providing clean and alternative energy, while investing in its long-term technologies. In 2021, the Public Investment Fund (PIF) announced the launch and execution of the project in Sudair industrial city, Riyadh, as part of the Renewable Energy Program and under the umbrella of the National Renewable Energy Program. It is an enhanced PV plant project with a total capacity of 1,500 MW.

The Sudair Solar PV IPP was announced in April 2021 during the inauguration of the Sakaka PV Power Plant, under the patronage of Crown Prince Mohammed Bin Salman Bin Abdulaziz, who also serves as prime minister and chairman of the Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable Energy Sector. It is poised to become one of the world's largest solar energy facilities and holds the distinction of being the Kingdom's largest, boasting an investment worth approximately SAR3.4 billion.

The project seeks to develop large neighborhoods in nine cities distributed among four administrative regions in the Kingdom: Riyadh, Makkah, Aseer, and the Eastern Province.

The project seeks to develop large neighborhoods in nine cities distributed among four administrative regions in the Kingdom: Riyadh, Makkah, Aseer, and the Eastern Province.

The offers an environmentally-friendly addition that mitigates emissions and offers affordable energy solutions. It aligns with the Saudi Green Initiative initiated by the Crown Prince, which seeks to guide the Kingdom and the region in preserving land and nature. The renewable energy sector is a vital contributor to providing sustainable solutions for addressing climate change challenges through the development of projects aimed at reducing carbon emissions.

The Sudair Solar PV IPP, at the time of its announcement, was considered the largest project of its kind in the Kingdom. It aims to harness the region's potential and natural resources, while promoting the growth of renewable energy and the localization of related technologies. This initiative coincided with the world reaching a critical turning point in its efforts to address the phenomenon of climate change. It highlights the significant progress in the country's journey toward a sustainable economy.

In-depth studies were conducted on the Sudair Solar PV IPP to ensure the project achieves its strategic objectives. A specialized Saudi technical team at the Ministry of Energy selected the project location and the mechanism for implementing the engineering works and preliminary studies with the aim of achieving the highest possible quality of electrical energy production. It also aimed to contribute to the formulation of the features of the circular carbon economy, which the Kingdom adopted and supported during its presidency of the G20 in 2020.

Construction works on the Sudair Solar PV IPP were assigned to an international energy systems infrastructure company. In fact, an engineering, procurement, and construction agreement was concluded with Larsen & Toubro Ltd in April 2021.

The operational aspects of the Sudair Solar Power Plant highlight significant benefits for consumers and the gross domestic product. An agreement was signed to sell energy to the Saudi Power Procurement Company for a period of twenty-five years. Furthermore, the project has achieved a tariff price for producing electricity from solar energy that is among the lowest in the world. Additionally, by utilizing solar bifacial PV cells equipped with tracking technology, the station is expected to provide the highest level of performance efficiency.

Several entities have invested in the Sudair Solar PV IPP. ACWA Power owns 35 percent of the shares, the Water and Electricity Holding Company (Badeel) owns 35 percent, and Saudi Aramco owns 30 percent of the First Sudair Renewable Energy Company, which was established for the project's purpose. Additionally, PIF holds a 50 percent share in ACWA Power, which leads this alliance for the execution of the project. The administrative and financial procedures for operating the Sudair Solar PV IPP were completed in 2021, with ACWA Power announcing the successful financial closure of the project.

Many financial institutions participated in financing the project, including Mizuho Bank Ltd, Riyad Bank, Korea Development Bank, Arab Petroleum Investments Company (APICORP), Al-Rajhi Banking and Investment Corporation, and Standard Chartered Bank, as authorized primary lenders and coordinators. The interim financing will be provided by Bank Albilad, SABB Bank, and SMBC International Bank PLC.

The project represents a quantum leap in diversifying optimal energy processes and accelerating transformation within the energy sector in the Kingdom. Additionally, the project will leverage ACWA Power's knowledge, experience, and capabilities in the global renewable energy sector and transfer it into the Kingdom. It will promote the involvement of local Saudi companies in the execution of renewable energy projects and empower young Saudi talent with the skills necessary for this sector, which has become a sustainable pillar of social and economic development in the Kingdom. The project supports the Kingdom's ambition to produce a portion of the renewable energy demands by 2030.

Saudi Aramco's investment in the project marks its first collaboration with PIF to achieve the Fund's Renewable Energy Program and develop sustainable energy solutions in its operations within the Kingdom through a variety of low-carbon energy solutions.

The plant is expected to become one of the largest single-contractor solar power plants in the world, through its production works using bifacial solar panels with a single solar tracking system.