The electricity generated from the wind farms will be enough to power 257,000 residential units annually. Credit: sirtravelalot/Shutterstock.com.

The Saudi Power Procurement Company (SPPC) has finalised two power purchase agreements (PPAs) with a consortium led by Marubeni for two wind farms with a combined capacity of 1.1GW.

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The agreements relate to the AlGhat and the Wa’ad Alshamal wind farms and are the first in the kingdom to involve a Japanese company.

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The levelised cost of energy (LCOE) was $15.65 (€14.35) per megawatt hour (MWh), claimed to be a global record low.

The 600MW AlGhat will be located in Al-Ghat, Riyadh Province. The 500MW Wa’ad Alshamal will be built in Turaif in Northern Borders Province.

Marubeni, alongside its consortium partner Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company (Ajlan & Bros), will be responsible for the development, construction, operation and maintenance of these facilities.

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SPPC will procure electricity from the two wind farms for 25 years following the start of their commercial operations.

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Saudi Arabia Minister of Energy Abdulaziz Bin Salman bin Abdulaziz Al Saud stated: “AlGat had achieved a new record low cost of electricity production from wind power at 1.56558 cents/kilowatt hours (kWh) LCOE, while the Wa’ad Alshamal project achieved a second world record low for wind power at 1.70187 cents/kWh LCOE.”

These projects form part of the fourth round of the Saudi National Renewable Energy Programme, overseen by the country’s Ministry of Energy.

The electricity generated by both wind farms is expected to power 257,000 residential units annually.

Abdulaziz Bin Salman highlighted that the projects are integral to the National Renewable Energy Programme, which aims to diversify the country’s energy sources and reduce reliance on liquid fuels.

The programme also seeks to utilise the kingdom’s vast lands to maximise renewable energy potential, aiming to increase the renewable share in Saudi Arabia’s energy mix to 50% by 2030.