Chinese inverter and energy storage manufacturer Sungrow will supply inverters to the 2,060MW Al-Shuaibah 2 solar photovoltaic (PV) project in Saudi Arabia.

A solar PV inverter converts the variable direct current (DC) output of a solar PV panel into a utility frequency alternating current (AC) that can be fed into an electricity grid.

Sungrow will provide 240 units of its 1+X modular inverter solution and 10,000 units of its combiner box for the project.

China Energy Engineering Corporation (CEEC), the main engineering, procurement and construction (EPC) contractor for the project awarded the inverter package to Sungrow.

A team of Saudi-headquartered Acwa Power and Water & Electricity Holding Company (Badeel), wholly owned by Saudi sovereign wealth vehicle the Public Investment Fund (PIF), is developing the project as part of the renewable energy procurement round being overseen by the PIF.

The team signed the power-purchase agreements (PPA) for the Al-Shuaibah 2 solar PV project in December 2022.

Badeel and Acwa Power will build, own and operate the facility. The electricity produced will be sold to offtaker Saudi Power Procurement Company (SPPC).

Badeel and Acwa Power will each hold a 50 per cent equity stake in Shuaibah Two Electrical Energy Company, a joint company dedicated to developing the project.

The EPC consortium for the project includes China Energy Construction International Group and Guangdong Electric Power Design Institute, in addition to CEEC.

The EPC team won the contract in October last year and is understood to have commenced work on the site the following month.

The new capacity is being procured under the kingdom’s renewable programme price discovery scheme, which the PIF oversees.

When complete, the project is expected to power 350,000 homes.

As with the PIF’s first solar PV project in Sudair, Acwa Power has been invited to submit proposals for the two schemes first.

In addition to Shuaibah 2, a smaller project – the Rabigh 2 solar scheme – is also under way.

The PIF is implementing 70 per cent of Saudi Arabia’s national renewable energy target installed capacity of 27.3GW by 2024 and 58.7GW by 2030, mainly through direct negotiations.

The energy ministry is implementing 30 per cent of this target through a public tendering process.

Sumitomo Mitsui Banking Corporation (SMBC) provided financial advisory services to the PIF for the Shuaibah 2 and Rabigh 2 solar power projects.

MEED's latest special report on Saudi Arabia includes:

> GIGAPROJECTS: Saudi Arabia under project pressure
> ECONOMY: Riyadh steps up the Vision 2030 tempo
> CONSTRUCTION: Saudi construction project ramp-up accelerates
> UPSTREAM: Aramco slated to escalate upstream spending
> DOWNSTREAM: Petchems ambitions define Saudi downstream
> POWER: Saudi Arabia reinvigorates power sector
> WATER: Saudi water begins next growth phase
> BANKING: Saudi banks bid to keep ahead of the pack
> DATABANK: Riyadh holds its buoyant economic heading