Home GCC Saudi Arabia Japan’s Marubeni secures 1.1GW wind energy deal in Saudi Arabia The Power Purchase Agreement (PPA) covers two projects, which will contribute 1.1 GW of renewable energy to the national grid by Gareth van Zyl May 26, 2024 Credit: Supplied One of Japan’s largest trading and investment business conglomerates, Marubeni Corporation, has secured a deal with the Saudi Power Procurement Company (SPPC) to build two major wind energy projects in Saudi Arabia. The projects will be developed in collaboration with Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company – Ajlan & Bros. The Power Purchase Agreement (PPA) covers the Al-Ghat and Waad Al-Shamal Wind IPP Projects, which will collectively contribute 1.1 GW of renewable energy to the national grid. More specifically, the Al-Ghat project in Riyadh Province will have a capacity of 600 MW, while the Waad Al-Shamal project in Northern Borders Province will generate 500 MW. SPPC will purchase the electricity produced from these facilities for 25 years post-commercial operation commencement. “In the power business industry, Marubeni considers Saudi Arabia, as a country which is undergoing remarkable growth, to be one of its highest-focus markets in the Middle East and Northern African (MENA) region,” said Marubeni in a statement. These projects represent the first involvement of a Japanese company in Saudi Arabia’s wind energy sector. In a company statement, Marubeni says it has previously been involved in other renewable energy projects in Saudi Arabia, such as the Rabigh Solar PV IPP Project (300 MW), a rooftop solar PV project, a district cooling business, and a clean hydrogen project. The Al-Ghat and Waad Al-Shamal projects are expected to significantly bolster Saudi Arabia’s renewable energy capacity, supporting the country’s Vision 2030 goals of diversifying its energy mix and reducing dependence on fossil fuels.
