The Saudi Power Procurement Co. signed two significant power purchase agreements with a consortium led by Japan’s Marubeni Corporation in Tokyo on Tuesday. These deals, part of the fourth phase of Saudi Arabia’s National Renewable Energy Program, were witnessed by Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud and Japan’s Minister of Economy, Trade, and Industry SAITO Ken during the Saudi-Japan Vision 2030 Business Forum.
The agreements focus on the Al-Ghat wind power project, with a capacity of 600 MW, and the Waad Al-Shamal wind power project, with a capacity of 500 MW. Prince Abdulaziz announced that the Al-Ghat project set a new global record for the lowest cost of electricity production from wind energy at 1.56558 US cents per kilowatt-hour, while the Waad Al-Shamal project achieved the second-best record at 1.70187 US cents per kilowatt-hour. These projects will collectively produce enough energy to power 257,000 residential units, aligning with Saudi Vision 2030’s goal to have renewable energy sources account for about 50% of the Kingdom’s energy mix by 2030.