Saudi Oil Burn Drops As Renewables Progress With Record Wind Award

24 May 2024 Issue: 67 / 21 By: Jamie Ingram

Saudi Arabia has signed PPAs for 1.1GW of wind capacity as part of plans to award 20GW renewables this year. A key goal is displacing oil from the power sector. Oil burn edged down in Q1: the challenge is now to sustain this over 2024.

The Saudi Power Procurement Co (SPPC) on 21 May signed power procurement agreements (PPAs) with a consortium led by Japan’s Marubeni for two wind farm developments in Saudi Arabia with combined capacity of 1.1GW. The agreements set new record low tariffs for wind projects.

“I am pleased to announce that the Al-Ghat project has set a new world record for the lowest cost of electricity production from wind energy,” Saudi Energy Minister Prince Abdulaziz bin Salman told the signing ceremony at the Saudi-Japan Vision 2030 Business Forum in Tokyo, adding that “the annual energy produced by both projects will be sufficient for the consumption of 257,000 residential units, demonstrating the significant success of these projects in enhancing energy efficiency in the Kingdom.” (CONTINUED - 777 WORDS)