Riyadh, Saudi Arabia — The Saudi Power Procurement Company (SPPC) has finalized power purchase agreements for seven new renewable energy projects. These projects will deliver a combined capacity of 15,000 megawatts. HRH Prince Abdulaziz bin Salman Al Saud, Minister of Energy and SPPC Chairman, witnessed the signing. The agreements represent a significant milestone in the Kingdom’s National Renewable Energy Program.

An investment of SAR 31 billion (approximately USD 8.3 billion) supports these deals, which encompass five solar photovoltaic projects and two onshore wind farms. ACWA Power leads the development consortium, working with Badeel, a Public Investment Fund entity, and Aramco Power, a subsidiary of Saudi Aramco.

Massive Solar and Wind Expansion

The solar projects span key regions. Bisha in Asir and Al-Humaij in Madinah will each supply 3,000 MW. Khulais in Makkah will add 2,000 MW. Two adjacent facilities in Afif, Riyadh Province, will together generate 4,000 MW. These plants offer globally competitive Levelized Costs of Electricity (LCOE). Afif 2, in particular, achieves the lowest rate at 1.25959¢/kWh.

Meanwhile, wind energy continues to grow. The Sitarah project in Riyadh will provide 2,000 MW, while Shaqra will deliver 1,000 MW. Although wind projects have higher LCOEs than solar, they remain essential to the Kingdom’s balanced renewable mix.

Driving Toward Vision 2030 Targets

SPPC has launched renewable projects totaling 43,213 MW. Of this, 38,713 MW are under signed PPAs, and 10,213 MW already feed into the grid. By the end of 2025, SPPC expects grid-connected capacity to reach 12,713 MW. This figure is expected to reach 20,013 MW by late 2026.

As a result, these initiatives advance Saudi Arabia’s strategy to diversify its energy sources and reduce dependence on hydrocarbons. In addition, the low LCOEs reflect the Kingdom’s financial strength and investor confidence, securing its place as a global leader in cost-effective renewables.

 

 

The Saudi Standard’s View: 15 GW Renewable PPAs Cement Saudi Arabia’s Energy Transition Leadership

The Saudi Power Procurement Company’s new agreements for 15,000 megawatts of renewable capacity mark a key moment in the Kingdom’s energy transition. With a total investment of SAR 31 billion and some of the world’s lowest energy costs, these deals demonstrate Saudi Arabia’s ability to rapidly, efficiently, and competitively expand clean power.

Global benchmarks are set from Riyadh to Asir.

The project portfolio stretches across Asir, Madinah, Makkah, and Riyadh. This broad geographic spread ensures balance and energy diversification. With LCOE rates as low as 1.25959¢/kWh, Saudi Arabia proves its global leadership in renewable pricing. The results stem from strong resource conditions, advanced engineering, and sound financial structures.

The consortium model reflects private-public alignment

ACWA Power, Badeel (PIF), and Aramco Power lead these projects. Their collaboration highlights the maturity of Saudi Arabia’s clean energy sector. By bringing together sovereign and private players, the Kingdom demonstrates its ability to attract capital and expertise in support of its national energy strategy.

Infrastructure scale backed by a solid track record

SPPC has launched over 43 GW of renewable energy projects. More than 10 GW now supply power to the grid. These results reflect execution, not just ambition. SPPC expects to increase this capacity to 12.7 GW by the end of 2025 and further to 20 GW by 2026.

Therefore, Saudi Arabia defines its energy transition in terms of delivery, not delay.

The energy pillar of Vision 2030 is accelerating.

These new agreements demonstrate that the Kingdom has progressed beyond planning to full-scale implementation. Saudi Arabia now shapes the global clean energy market by combining security, affordability, and sustainability.

This milestone deepens the Kingdom’s commitment to climate-conscious growth. It advances Vision 2030 not just with added megawatts but by fostering strong market design, investor confidence, and global energy leadership.

 

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