Meed | PowerChina to undertake Al-Masaa and Henakiyah 2 EPC

PowerChina to undertake Al-Masaa and Henakiyah 2 EPC

17 December 2024

Beijing-headquartered Power Construction Corporation of China (PowerChina) will undertake the engineering, procurement and construction (EPC) contracts for two solar independent power projects (IPPs) in Saudi Arabia, according to a source familiar with the projects.

The Al-Masaa solar IPP will have a capacity of 1,00MW while the Al-Henakiyah 2 solar IPP project will have a capacity of 400MW. The two solar IPPs were tendered earlier this year as part of the fifth procurement round of the kingdom's National Renewable Energy Programme (NREP).

France's EDF Renewables and its consortium partner, China’s SPIC Huanghe Hydropower Development Company won the contracts to develop the projects.

The team signed the power-purchase agreements (PPAs) with the principal buyer, Saudi Power Procurement Company (SPPC), for the two projects earlier this month.

The projects are estimated to cost $850m.

The EDF Renewables and SPIC consortium offered to develop the Al-Masaa Solar IPP for a levelised electricity cost (LCOE) of $c1.36 akilowatt-hour (/kWh). It saw off completion from the second-lowest bidder comprising a team of the local AlJomaih Energy & Water and France's TotalEnergies Renewables, which bid for $c1.40/kWh.

Offering a tariff of $c1.51/kWh, the EDF-led team also prevailed over a consortium comprising the UAE's Masdar and the local Nesma Renewables to win the bid for the Henakiyah 2 solar IPP contract.

The 400MW Al-Henakiyah 2 solar IPP is located 36 kilometres southeast of Al-Henakiyah town in Medina while the 1,000MW Al-Masaa project is located in Dharghat town in Hail province.

The consortium will develop, build, own and operate the projects as part of a 25-year agreement with SPPC.

EDF said once operational, both projects are expected to power more than 240,000 homes a year and displace more than 2.7 million tons of carbon dioxide annually.

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Jennifer Aguinaldo