Sudair Solar Could be a Showcase Project for PIF
Posted on 04/16/2021
The Sudair Solar photovoltaic project is in Sudair Industrial City, located approximately 120 kilometers from Riyadh.
Saudi Arabia’s Public Investment Fund (PIF) holds a 50% stake in ACWA Power. ACWA Power is leading the development for Sudair Solar PV project alongside PIF portfolio company Water and Electricity Holding Company (Badeel). Badeel is 100% owned by PIF. In addition, PV project owners signed a power purchase agreement with the Saudi Power Procurement Company for 25 years.
The 1.5 gigawatt Sudair Solar PV project is set to become one of the world’s largest Solar PV plants by capacity and touches on a goal for having Saudi Arabia to run more on renewable energy internally. With an investment value of approximately SAR 3.4 billion (US$ 907 million), Sudair PV IPP will be capable of powering 185,000 homes and offsetting nearly 2.9 million tons of emissions per year.
Larsen & Toubro (L&T), through its Larsen & Toubro’s Power Transmission & Distribution Business, won an EPC contract for the Sudair Solar PV. Saudi Arabia is pursuing a dual approach to solar power development. The energy ministry’s Renewable Energy Program Development Office is holding competitive tenders for 30% of the PV capacity called for by Saudi Arabia’s clean energy goals. The remaining 70% is being awarded by the PIF to project developers.