Marubeni-led team reaches 1.1GW wind financial close
21 November 2024

A developer consortium led by Japan’s Marubeni Corporation has reached financial close with a team of lenders for the contracts to develop two wind independent power producer (IPP) projects in Saudi Arabia.
Marubeni and the local Ajlan & Bros won the contracts to develop the first two wind schemes of the kingdom’s National Renewable Energy Programme (NREP) round four, the 600MW Al-Ghat and 500MW Waad Al-Shamal wind IPPs, in May this year.
According to an industry source, the following lenders will provide financing for the two projects:
- Japan Bank for International Cooperation (Jbic)
- Standard Chartered Bank (UK)
- Sumitomo Mitsui Trust Bank (Japan)
- Commercial Bank of Dubai (UAE)
The consortium agreed to develop and operate the 600MW Al-Ghat wind IPP project with a new world-record-low levelised electricity cost (LCOE) from wind power of $cents 1.56558 a kilowatt-hour (kWh), or about 5.87094 halalas/kWh.
The 500MW Waad Al-Shamal project has also achieved a second world-record-low tariff for wind power of $cents 1.70187/kWh or 6.38201 halalas/kWh, the Energy Ministry announced in May.
The tariff achieved for Al-Ghat is almost 22% lower than the LCOE agreed for Saudi Arabia’s first wind IPP, the 400MW Dumat Al-Jandal scheme, which a team comprising the UAE’s Abu Dhabi Future Energy (Masdar) and France’s EDF Renewables won in 2019.
Marubeni will own 51%, while Ajlan will maintain a 49% stake in the project company that will implement the projects.
The Japanese-local team has appointed Power Construction Corporation of China (Power China) and Sepco 3 to undertake the engineering, procurement and construction (EPC) contract for the wind projects.
MEED previously reported that the same developer team was expected to win the contract to develop and operate the third wind scheme of NREP round four, the 700MW Yanbu wind IPP.
The contract could be awarded before the end of the year, according to a source.
It is understood that other teams, separately led by local utility developer Acwa Power, France’s Engie and EDF Renewables, submitted proposals for the contract to develop the Yanbu wind IPP scheme.
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