Saudi Arabia Advances Renewable Energy with SR1.7 Billion Wind Power Project in Yanbu

In a major step towards realizing its clean energy ambitions, Saudi Power Procurement Company (SPPC) has signed a Power Purchase Agreement (PPA) for the 700-megawatt Yanbu Wind Power Project, with an investment exceeding SR1.7 billion ($458 million). The deal was sealed with a consortium comprising Japan’s Marubeni Corporation and Abdulaziz Al-Ajlan Sons for Commercial and Real Estate Investment Co., underscoring the Kingdom’s strong commitment to sustainable development and international collaboration.

The project is part of Saudi Arabia’s National Renewable Energy Program (NREP)—a strategic framework managed by the government to diversify power sources, optimize energy efficiency, and maximize economic returns by phasing out the use of liquid fuels in electricity generation.

Set to be developed in the Madinah region, the Yanbu Wind Power Project is expected to deliver electricity at an ultra-competitive tariff of just SR0.06 per kilowatt-hour, showcasing the Kingdom’s increasing ability to deploy cost-effective renewable energy technologies.

The initiative aligns with the national goal of ensuring that renewable energy constitutes around 50% of Saudi Arabia’s total power mix by 2030, with the overall renewable capacity expected to reach between 100 and 130 gigawatts in the same period.

SPPC, which manages electricity sourcing across the Kingdom, plays a key role in executing feasibility studies, conducting tenders, and signing agreements with independent power producers (IPPs). Its structured and transparent approach continues to attract international investors and partners.

Earlier in November, SPPC finalized agreements for five independent power projects, with a combined capacity of 9.2 GW, including two thermal power plants (Rumah and Al Nairyah) and the Al Sadawi Solar Photovoltaic Project. The thermal plants will incorporate combined cycle gas turbine (CCGT) technology with carbon capture capabilities, adding 7.2 GW to the national grid and supporting Saudi Arabia’s transition to low-emission technologies. These plants are expected to be operational by the second quarter of 2028.

Source: Saudi Arabia Advances Renewable Energy with SR1.7 Billion Wind Power Project in Yanbu – GCC BUSINESS WATCH