Marubeni secures 1.1 GW wind power deal in Saudi Arabia

The Power Purchase Agreement (PPA) covers two projects, which will contribute 1.1 GW of wind energy to the national grid.
One of Japan’s largest trading and investment conglomerates, Marubeni Corporation, has closed an agreement with Saudi Power Procurement Company (SPPC) to build two major wind energy projects in Saudi Arabia.

The projects will be developed in collaboration with Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company – Ajlan & Bros.

The Power Purchase Agreement (PPA) covers the Al-Ghat and Waad Al-Shamal wind IPP projects, which together will contribute 1.1 GW of renewable energy to the national grid.

Specifically, the Al-Ghat wind farm, in Riyadh province, will have a capacity of 600 MW, while the Waad Al-Shamal wind farm, in the Northern Borders province, will generate 500 MW. SPPC will purchase the electricity produced at these facilities for 25 years after the start of commercial operation.

“In the energy business industry, Marubeni considers Saudi Arabia, as a country that is experiencing notable growth, as one of its main focus markets in the Middle East and North Africa (MENA) region,” Marubeni said in a statement.

These projects represent the first involvement of a Japanese company in Saudi Arabia’s wind energy sector.

Marubeni says he has previously been involved in other renewable energy projects in Saudi Arabia, such as the Rabigh Solar PV IPP project (300 MW), a rooftop solar PV project, a district cooling business and a clean hydrogen project. .

The Al-Ghat and Waad Al-Shamal projects are expected to significantly strengthen Saudi Arabia’s renewable energy capacity, supporting the country’s Vision 2030 goals of diversifying its energy mix and reducing dependence on fossil fuels.

byGareth van Zyl