#Saudi Arabia #Riyadh #Solar Power #EDF Power Solutions

EDF Power Solutions and Consortium Secure Financing for Solar Projects

In a landmark achievement for renewable energy in the Middle East, a consortium composed of EDF Power Solutions, SPIC Huanghe Hydropower Development Co., Ltd. (SPIC HHDC), and Saudi Aramco Power Company (SAPCO) has achieved a significant financial milestone. This consortium has secured financing for two major solar power projects in Saudi Arabia with a combined capacity of 1,400 megawatts (MW). These projects, named the Al Masa'a Solar Power Plant (1,000 MW) and Al Henakiyah-2 (400 MW), represent a crucial step in the country's transition to renewable energy.

The Al Masa'a project will be situated in Hail Province, while Al Henakiyah-2 will be located in Madinah Province. Both projects are poised to begin commercial operations with Al Henakiyah-2 set for Q1 2027 and Al Masa'a for Q3 2027. Once operational, these facilities will provide renewable energy to over 240,000 households and significantly decrease carbon dioxide emissions by approximately 3 million tons per year.

Financing and Institutional Support

The financial support for these projects comes from a coalition of both local and international financial institutions, which includes prominent names such as Saudi Investment Bank, Bank of China, French Société Générale, BNP Paribas, Abu Dhabi Commercial Bank, and First Abu Dhabi Bank. This backing not only highlights the growing confidence in Saudi Arabia's renewable energy sector but also demonstrates a robust investment landscape.

The projects fall under the National Renewable Energy Program (NREP), governed by the Saudi Ministry of Energy. They also align with Saudi Arabia's strategic objective to enhance the share of renewables to about 50% in the electricity generation mix by 2030. Furthermore, they contribute to broader decarbonization efforts and support the Kingdom's Liquid Displacement Program.

Commitment to Sustainability

Cédric Le Bousse, Executive Vice President at EDF Power Solutions for Europe, the Middle East, and Central Asia, remarked on the implications of this financial close, stating, "This significant milestone underscores financial institutions' ongoing confidence in the renewable energy sector in Saudi Arabia. The successful closure of the Al Masa'a and Al Henakiyah-2 projects not only boosts EDF Power Solutions' presence in the region but also reflects our commitment to Saudi Arabia's Vision 2030 and the Saudi Green Initiative."

On behalf of SPIC HHDC, a leading Chinese enterprise in clean energy, the spokesperson expressed enthusiasm about the collaboration, emphasizing a commitment to shared strengths and effective teamwork. They highlighted the project's potential to accelerate the region's transformation towards green energy.

Waleed A. Al Saif, Senior Vice President of New Energies at Aramco, emphasized the importance of this investment. He remarked, "Investing in these solar plants is a pivotal move to position Aramco's New Energies division at the forefront of the rapidly growing renewable sector, aligning with our long-term vision of meeting increasing energy demands."

Economic and Employment Benefits

Once completed, the projects are expected to deliver substantial economic benefits to Saudi Arabia. During construction, a large proportion of equipment, materials, and services will be sourced locally. Furthermore, Saudi nationals will constitute a significant portion of the workforce, with this proportion anticipated to rise throughout the operational lifespan of the plants.

These solar power initiatives not only exemplify a robust step forward in diversifying Saudi Arabia's energy landscape but also reflect the Kingdom's growing commitment to sustainable development and innovation in energy production.

About EDF Power Solutions

EDF Power Solutions represents the synergy between EDF Renewables and EDF Group International Division, focusing on developing, constructing, and operating renewable and low-carbon energy facilities. As a major global player in the energy transition, EDF Power Solutions operates a gross installed capacity of 31 gigawatts (GW) across 25 countries, aimed at fighting climate change by deploying innovative, responsible projects.

Conclusion

The successful financing and planned implementation of the Al Masa'a and Al Henakiyah-2 solar projects mark a significant leap forward for renewable energy in Saudi Arabia. These initiatives are not merely projects; they embody the Kingdom's aspirations to transition toward a sustainable energy future while supporting economic growth and job creation.