By Akanimo Sampson
Saudi Arabia is currently meeting the energy needs of 185,000 houses and reducing carbon emissions by about 2.9 tons annually.
This is because the Saudi Public Investment Fund has launched the Sudair Solar Energy project in Sudhir Industrial City, one of the largest solar parks in the country.
A consortium with ACWA Power, which is 50% owned by PIF, and Baddiel will invest $907 million in the 1.5-GW solar PV project, Al Arabiya reported.
The first phase of the project is expected to begin producing electricity during the second half of 2022 at the second-lowest price ever achieved globally for a solar PV project, 1.239 cents per kWh.
The announcement came during the inauguration ceremony of the 300-MW Sakaka solar power plant sponsored by Crown Prince, Mohammed bin Salman, where he announced seven new solar projects located in Madinah, Sudhir, Qurayyat, Shuaiba, Jeddah, Rabigh and Rafha.
“The launch of the Sudhir Solar PV project contributes toward achieving the Kingdom’s vision in expanding the use of renewable energy, localising cutting-edge technologies, and benefiting from Saudi Arabia’s natural resources to develop this sector,” said Yasir Al-Rumayyan, Governor of PIF.
“It also embodies PIF’s strategy to launch promising sectors that enable and support the private sector, and aims to increase PIF and its portfolio companies’ contribution to local content by 60%, as well as expanding opportunities for local companies to contribute to the Fund’s projects.”
The landmark renewable energy project is a significant step and a key part of PIF’s commitment to developing 70% of Saudi Arabia’s renewable energy capacity outlined in the Kingdom’s Vision 2030.
The development of renewable energy capacity will also support the delivery of the Saudi Green Initiative. Recently announced by the Crown Prince, this initiative aims to chart a path for Saudi Arabia and the region to protect the planet by clearly defining an ambitious road map that rallies the region and will significantly contribute to achieving global targets in confronting climate change.
The announcement comes as part of the PIF Strategy 2021-2025, which focuses on unlocking the capabilities of promising sectors to enhance the Kingdom’s efforts in diversifying revenue sources. PIF and its subsidiaries aim to contribute SAR 1.2 trillion to non-oil GDP cumulatively by the end of 2025 by activating growth opportunities for strategic and vital sectors in the Kingdom.
PIF has identified utilities and renewables as one of the 13 strategic sectors in its strategy and the development of Saudi Arabia’s renewable energy sector is also a core objective of Vision 2030, Saudi Arabia’s blueprint for a modern and diversified economy.
