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11 décembre 2024
Publication series – 28 de 66 Publications
Rabigh 2 Solar Independent Power Project (IPP)
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Event Details:
On December 3, 2024, AlJomaih Energy & Water and Total Energies Renewables signed the agreement for the Rabigh 2 Solar Independent Power Project (IPP) in Riyadh, Saudi Arabia. They aim to develop a 300 MW solar power facility, contributing to Saudi Arabia’s renewable energy goals.
Partnership Goals:
This partnership focuses on developing the Rabigh 2 Solar IPP under Saudi Arabia's Vision 2030, which aims to diversify the Kingdom's energy sector. The project features one of the region’s lowest solar tariffs at $1.78 per kWh, making it a major step toward achieving the country’s renewable energy targets and reducing dependence on oil.
Key Projects and Developments:
The Rabigh 2 project is part of Round 5 of the National Renewable Energy Program (NREP) which is supervised by the Ministry of Energy aiming to achieve an energy mix for electricity production by having gas and renewable energy at approximately 50% each by 2030 and reduce dependence on liquid fuels in electricity generation in line with Saudi Vision 2030. The fifth renewable energy round aims to add over 2,000 MW of solar capacity to the national grid by 2026. It serves as a flagship development in the Kingdom’s renewable energy sector, significantly contributing to Saudi Arabia’s clean energy targets.
Strategic Importance:
The Rabigh 2 Solar IPP plays a crucial role in Vision 2030, which seeks to reduce the Kingdom’s reliance on oil and increase sustainable energy production. It strengthens Saudi Arabia’s position as a leader in the Middle East’s clean energy market and supports the country’s transition to renewable energy sources.
Future Prospects:
With a $2.1 billion investment, the project will generate significant returns and attract further foreign investment. The successful implementation of Rabigh 2 will set a precedent for future large-scale renewable energy projects and stimulate additional partnerships in the region’s growing solar power market.
Global Energy Collaboration:
The collaboration between Total Energies and Saudi entities highlights the global interest in Saudi Arabia’s renewable energy sector. The project supports regional efforts to expand renewable energy capacity and contributes to the sustainability of energy production in the Middle East.
Technological and Economic Impact:
The competitive tariff of $1.78 per kWh reflects the growing efficiency of solar energy in Saudi Arabia. Beyond energy production, the project will create jobs, stimulate economic growth, and help Saudi Arabia reduce its carbon footprint while expanding its renewable energy portfolio.
Conclusion:
The Rabigh 2 Solar IPP agreement underscores Saudi Arabia's commitment to expanding its renewable energy portfolio as part of its Vision 2030 goals. With a strong international partnership and an efficient solar tariff, the project will play a key role in the Kingdom’s energy transition. The $2.1 billion investment will drive long-term economic and environmental benefits and serve as a model for future renewable energy projects in Saudi Arabia and the broader Middle East.
In November 2024, the Saudi Power Procurement Company (SPPC) announced the Qualified Developers for the sixth round of renewable energy projects under the National Renewable Energy Program. The combined capacity of Round 6 projects is approximately 4,500 MW. SPPC is responsible for the predevelopment, tendering, and subsequently offtaking the Energy from the projects. The projects during the sixth round are the following: 1) 1,500 MW Dawadmi Wind IPP to be located in the Central province, 2) 1,400 MW Najran Solar IPP to be located in the Southern province, 3) 600 MW Samtah Solar PV IPP to be located in Central province, 4) 600 MW Darab Solar PV IPP to be located in the Southern Province, and 5) 400 MW Sufun Solar PV IPP to be located in the Central Province.
Saudi Arabia’s plans to localize renewable energy production and establish itself as a global exporter present substantial business opportunities in the renewable energy sector along the entire value chain. Interested companies can participate in a range of investment projects. Engaging with key stakeholders and leveraging local partnerships is key for success.
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