Masdar To Expand in Saudi with 1.1 GW & Azerbaijan with 500 MW Projects

Masdar Plans Expansion in Saudi with 1.1 GW & Azerbaijan with 500 MW Projects

Led by Abu Dhabi based renewable energy firm, Masdar, EDF Renewables, and Saudi conglomerate Nesma Company have joined hands with the Saudi Power Procurement Company (SPPC) for the development of a solar plant with capacity of 1100 MW. When it is operational, the Al Henakiyah solar power project will supply power to over 190,000 homes every year, while curbing over 1.8 million tpy carbon dioxide (CO2). The project is valued at US$1 billion.

The Masdar led consortium was awarded the Al Henakiyah solar power plant by SPPC after it bid for it at US$16.84/MWh.

The project is expected to give an impetus to the local economy, given that a minimum of 19% of the equipment related to the Al Henakiyah solar power project will be provided by Saudi firms when the construction is in progress. 50% of the workforce employed for the project will also be Saudi nationals and increase to 75% during the complete operational life of the Al Henakiyah solar power project.

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The Al Henakiyah solar power project will be among the largest single-site solar plants once developed. The winning bidders have entered into a 25-year agreement with SPPC for Al Henakiyah solar power plant with the off-taker SPPC.

Uzbekistan Projects

In another noteworthy development, Saudi Arabia’s ACWA Power has also entered into an agreement with Masdar, and the State Oil Company of Azerbaijan Republic (SOCAR) for the development of 500 MW renewable energy projects in Azerbaijan.

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ACWA Power stepped into the Azerbaijan market in 2019. At present, the firm is developing a 240 MW wind power plant in the country boasting an investment worth US$286 million. ACWA Power has a series of giga projects in its portfolio, entailing an onshore wind farm of 1 GW and an offshore wind farm of 1.5 GW. It also has a battery energy storage project in its kitty.

Masdar To Expand in Saudi , on the other hand, established its presence in Azerbaijan in 2020. It has the Garadagh solar plant of 230 MW.

Renewables push in Uzbekistan 

Uzbekistan, which has expansive fossil fuel reserves, has been entering into collaborative agreements to enhance its renewable energy portfolio. Last year, it signed an agreement with French energy firm Voltalia to develop Shurkul complex integrating solar, wind and battery storage. The project has a capacity of 400 to 500 MW.

Masdar and ACWA Power are significantly contributors to the renewables portfolio of Uzbekistan. While ACWA Power has 3.1 GW wind project in the offing in the region, Masdar has set sights on the establishment of a 3.2 GW utility-scale solar project. Together, the two firms from the middle east make up close to 73 percent% of all renewable energy capacity in the works in Uzbekistan.

Masdar achieved a clean energy capacity of 20 GW in 2022, generated 18,000 GWh of clean energy.