On July 12, 2025, Saudi Arabia's State Power Procurement Company (SPPC), as the country's sole electricity repurchaser, officially signed the Yanbu Wind Power Project Power Purchase Agreement (PPA). The total installed capacity of the project is 700 megawatts, with a total investment of over approximately 458 million US dollars.

The project developer consortium is jointly composed of Marubeni Corporation from Japan and Abdulaziz Al Ajlan Sons Co. for Commercial and Real Estate Investment from Saudi Arabia. The project is located in the Madinah Region of Saudi Arabia, with a levelized cost of electricity (LCOE) as low as 1.72468 cents per kilowatt hour, demonstrating strong market competitiveness.

Saudi Arabia's wind power development accelerates, breaking global low price record

In 2017, Saudi Arabia launched its first independent wind power project (IPP) tender under the National Renewable Energy Program, the Dumat Al Jandal 400 MW wind power project. The project is jointly developed by Masdar in the United Arab Emirates and EDF Renewables in France, with a winning bid price of 1.99 cents per kilowatt hour, and will be connected to the grid and put into operation in 2022.

In addition, Marubeni Corporation of Japan and Ajiran Brothers have successfully won the bid for the Al Ghat 600 MW wind power project and the Wa'ad Al Shamal 500 MW wind power project in the fourth round of renewable energy bidding in Saudi Arabia. Among them, the Algat project set a new global record for large-scale wind power IPP project prices with an ultra-low electricity price of 1.56558 cents per kilowatt hour. The Saudi Public Investment Fund (PIF) and local energy giant ACWA Power are also jointly planning and developing a 3 GW large-scale wind power project to further promote the country's renewable energy layout.

2030 goal: Renewable energy accounts for 50%

According to Saudi Arabia's National Renewable Energy Development Plan, by 2030, the country plans to increase the proportion of installed renewable energy generation capacity to 50%, with a total scale of nearly 60 gigawatts, of which wind power accounts for over 10 gigawatts. In June 2024, the Saudi Ministry of Energy announced that it will bid for approximately 20 gigawatts of wind and solar projects annually in the future, aiming to achieve a renewable energy installation target of 100 to 130 gigawatts by 2030 and accelerate the transformation of the energy structure. The implementation of the Yanbu wind power project not only demonstrates Saudi Arabia's cost advantage in the field of wind power, but also provides new market opportunities for China and other the Belt and Road partners. (This article is from the official website of Jian Dao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website new energy column editor/Yang Beihua