TotalEnergies successfully secures funding for its inaugural solar power plant in Saudi Arabia.
Sustainable energy provision in Saudi Arabia is poised for significant growth as French energy giant TotalEnergies achieves financial closure for its maiden solar power plant in the Kingdom. The company, in a press statement, revealed that a consortium consisting of TotalEnergies, Japan’s Toyota Tsusho, and Saudi Arabia’s Altaaqa Renewable Energy will develop the 119-megawatt solar plant.
The consortium successfully secured a power purchase agreement for the project through an auction held between 2021 and 2022, in collaboration with Riyadh-based Saudi Power Procurement Co. This agreement allows the consortium to finance, own, and operate the photovoltaic power plant, marking a major milestone in sustainable energy initiatives in the country.
Construction of the plant is scheduled to commence in Wadi Al-Dawasir, located approximately 500 kilometers southwest of Riyadh. Chinese infrastructure company SEPCO has been entrusted with the responsibility of building the facility, with completion expected by early 2025, according to the press statement.
Ahmed Tarzi, the country chair of TotalEnergies Saudi Arabia, expressed enthusiasm about the project, stating, “This project is another example of our successful multi-energy strategy, where our long presence in Saudi Arabia is enabling us to actively participate in the country’s energy transition to renewable energies in line with Vision 2030 and hence developing local champions as well.” Tarzi’s comments highlight the commitment of TotalEnergies to support Saudi Arabia’s renewable energy goals outlined in Vision 2030.
As part of Vision 2030, Saudi Arabia aims to enhance its domestic generation capacity from renewable energy sources to 50 percent by the end of the decade, as the Kingdom endeavors to become a net-zero emitter by 2060. This ambitious target reflects Saudi Arabia’s commitment to environmental sustainability and aligns with global efforts to combat climate change.
The achievement of financial closure for this solar power plant comes on the heels of another significant development in Saudi Arabia’s renewable energy sector. Last May, Saudi Power Procurement Co. signed a power purchase agreement with Badeel and ACWA Power, both owned by the Public Investment Fund, for the construction of three new solar energy projects. With a combined capacity of 4.55 gigawatts, these projects are set to be built at a cost of SR12.2 billion ($3.25 billion) and will provide clean energy to approximately 750,000 households.
The efforts of Saudi Arabia to accelerate its transition to renewable energy have gained recognition globally. In March, S&P Global Ratings released a report that highlighted Saudi Arabia and the United Arab Emirates as leaders in the region’s fight against climate change, accounting for 90 percent of the Gulf’s renewable energy production.
With the successful financing of its first solar power plant in Saudi Arabia, TotalEnergies has positioned itself as a key player in the country’s sustainable energy sector. The project not only contributes to the diversification of Saudi Arabia’s energy mix but also bolsters the realization of the Kingdom’s ambitious renewable energy targets. As more such initiatives take shape, Saudi Arabia continues to make significant strides towards a cleaner and more sustainable future.
