Saudi Arabia has signed agreements worth SAR31 billion ($8.3 billion) to develop seven large-scale solar and wind energy projects with a combined capacity of 15,000 megawatts (MW), marking the largest single-phase renewable energy capacity award globally.
The deals were formalised in Riyadh in the presence of Prince Abdulaziz bin Salman, Minister of Energy and Chairman of the Board of the Principal Buyer, the state entity responsible for power procurement.
The projects are part of the Kingdom’s National Renewable Energy Program and are being developed by a consortium led by ACWA Power, in partnership with the Water and Electricity Holding Company (Badeel), a wholly owned subsidiary of the Public Investment Fund (PIF), and Aramco Power, a unit of state-owned energy giant Saudi Aramco.
The portfolio comprises five photovoltaic solar projects and two wind power plants, located across various regions of the country. Together, they are expected to play a critical role in advancing Saudi Arabia’s energy transition goals and its ambition to derive 50% of its electricity from renewables by 2030.
The solar projects include the 3,000 MW Bisha Project in the Aseer region, with a levelized cost of energy (LCOE) of 1.29 US cents per kilowatt-hour (kWh); the 3,000 MW Humaij Project in the Madinah region, with an LCOE of 1.31 US cents/kWh; the 2,000 MW Khulis Project in the Makkah region, with an LCOE of 1.36 US cents/kWh; the 2,000 MW Afif 1 Project in the Riyadh region, with an LCOE of 1.26 US cents/kWh; and the 2,000 MW Afif 2 Project, also in Riyadh, with an LCOE of 1.26 US cents/kWh.
The wind energy projects include the 2,000 MW Starah Project in the Riyadh region, which posted an LCOE of 2.06 US cents/kWh, and the 1,000 MW Shaqra Project, also in Riyadh, with an LCOE of 1.87 US cents/kWh.
The projects highlight Saudi Arabia’s commitment to expanding its renewable energy portfolio while driving down the cost of clean electricity to some of the most competitive levels globally, according to the Kingdom’s energy ministry.
The Principal Buyer, which oversees project feasibility, tendering, and power purchase agreements (PPAs), noted that the record-low LCOE figures were made possible through optimised financing structures and strong investor appetite.
Saudi Arabia has now launched renewable electricity generation projects totalling 43,213 MW. Of these, PPAs have been signed for 38,713 MW, and 10,213 MW have already been connected to the grid. The grid-connected capacity is projected to rise to 12,713 MW by the end of 2025, and reach 20,013 MW by the end of 2026.
The deals reinforce the Kingdom’s position as a leading destination for renewable energy investment and signal continued momentum toward diversifying its power sector, reducing reliance on fossil fuels, and achieving net-zero emissions by 2060.
