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Saudi Arabia’s Al-Rass solar PV starts operations

23 August 2024

The 700MW Al-Ras solar photovoltaic (PV) independent power project (IPP) in Saudi Arabia is now operational.

AlRass Renewable Energy Company, the special purpose vehicle formed for the project, received the commercial operation certificate from the offtaker, Saudi Power Procurement Company (SPPC), on 15 August, according to Saudi utility developer Acwa Power.

Acwa Power owns a 40.1% share in AlRass Renewable Energy Company. Water & Electricity Holding Company (Badeel), a subsidiary of Saudi Arabia's Public Investment Fund (PIF), and Huanghe Hydropower Development Company, part of China’s State Power Investment Corporation (SPIC), maintain the remaining 20% and 39.9% of the project company.

The developer consortium won the contract to develop and operate the project in March 2022 and signed a 25-year power-purchase agreement with SPPC.

The team offered a levelised electricity cost of 5.62342 hals a kilowatt-hour (kWh) (1.5 $cents/kWh) for the contract. The total project investment is estimated to be SR1.7bn ($453m).

The Al-Rass solar PV IPP is the largest scheme tendered in the third round of the kingdom’s National Renewable Energy Programme (NREP) being overseen by the Energy Ministry.

The Energy Ministry is overseeing the procurement of 30% of the kingdom's target renewable energy capacity by 2030.

The PIF is procuring the remaining 70% of Riyadh's target renewable energy capacity through a price discovery scheme.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12396593/main3604.jpg
Jennifer Aguinaldo

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