Saudi Arabia’s Principal Buyer has signed a power purchase agreement (PPA) with a consortium led by Japan’s Marubeni Corporation and local partner Ajlan & Bros for a new 700-megawatt wind energy project in Yanbu, as the Kingdom accelerates its push to diversify its energy mix under Vision 2030.
The deal, valued at over 1.7 billion Saudi riyals ($458 million), is a major step under the National Renewable Energy Program (NREP), which is overseen by the Ministry of Energy.
The wind farm will be developed in Al-Madinah Province and is expected to deliver electricity at a highly competitive Levelized Cost of Electricity (LCOE) of 1.72468 US cents per kilowatt-hour (6.46755 halalas/kWh).
The project is part of Saudi Arabia’s broader strategy to generate 50% of its electricity from renewable sources, displacing high-value liquid fuels in the power sector and supporting the Kingdom’s transition to a more sustainable energy system.
The Principal Buyer, which acts as the central offtaker for all power generation projects in Saudi Arabia, is responsible for the predevelopment, tendering, and energy procurement processes in the country’s liberalising power market.
Saudi Arabia has continued to attract international investment to its renewables sector, and PPA signing with Marubeni-Ajlan & Bros consortium reflects growing confidence in its long-term energy transition plans.
The Yanbu wind project will be among the largest in the region and contributes to the Kingdom’s target of reaching renewable energy capacity in the tens of gigawatts by the end of the decade.
