EDF Renewables and HHDC Consortium to Develop 1.4 GW Solar Projects in Saudi Arabia

In a significant stride toward expanding renewable energy in Saudi Arabia, a consortium of EDF Renewables and China's HHDC will develop, finance, construct, and operate two large-scale solar projects with a combined capacity of 1.4 GW. These projects represent a crucial addition to Saudi Arabia's ambitious renewable energy goals.

Details of the Solar Projects

The consortium has successfully secured bids for:

• Al Masa’a Solar Project (1 GW): Located in Hail province, this project will be one of Saudi Arabia’s largest solar developments.

• Al Henakiyah 2 Solar Plant (400 MW): Situated in Madinah province, this facility further solidifies the kingdom’s commitment to solar energy.

  
  

These initiatives are part of Saudi Arabia’s fifth round of renewable energy tenders, managed by the Saudi Power Procurement Company (SPPC), a government-owned entity.

Competitive Bidding and Financing

• The EDF-HHDC consortium submitted ultra-competitive bids of $0.0131/kWh for Al Masa’a and $0.0140/kWh for Al Henakiyah 2.

• The projects are estimated to cost $850 million, with funding secured through 25-year power purchase agreements (PPAs).

• The generated power will be procured by SPPC, ensuring a steady supply of clean energy to the grid.

  
  

Timeline and Local Participation

• Al Henakiyah 2 is expected to achieve financial close in early 2025 and connect to the grid by the fourth quarter of 2026.

• Al Masa’a is slated for operation by the second quarter of 2027.

• A minimum of 21% local sourcing for materials, equipment, and services has been mandated during construction, fostering domestic economic growth.

  
  

Powering a Cleaner Future

Once operational, these projects will generate enough electricity to power over 240,000 homes annually, significantly contributing to Saudi Arabia's renewable energy targets.

Beatrice Buffon, Vice President of EDF Group’s International Division and CEO of EDF Renewables, remarked:

“These projects will expand EDF’s renewable capacity in Saudi Arabia to 3.5 GW, aligning with our commitment to sustainable energy transitions.”

Saudi Arabia’s Renewable Energy Vision

The kingdom aims to derive 50% of its energy mix from renewables by 2030, driven by initiatives like these. This vision aligns with global efforts to combat climate change while fostering regional energy security and economic diversification.