Saudi Arabia sets world record for cheap wind energy.
Saudi Arabia has set new world records for the lowest costs of producing electricity from wind power, thanks to the Al-Ghat and Wa’ad Alshamal projects.
This achievement aligns with the Kingdom’s ambitious goal to have renewable energy make up 50% of its electricity mix by 2030.
The announcement was made by Prince Abdulaziz bin Salman, the Minister of Energy, during the Saudi-Japan Vision 2030 Business Forum in Tokyo.
The forum saw the signing of crucial energy agreements, marking a major milestone for the Saudi National Renewable Energy Program (NREP).
As part of the fourth round of the NREP, the Saudi Power Procurement Company, in collaboration with a consortium led by Japan’s MARUBENI Corporation, signed power purchase agreements for the AlGhat Wind Project (600 MW) and the Wa’ad Alshamal Wind Project (500 MW).
Both projects emerged victorious in a competitive bidding process, securing world-record low costs for wind energy production.
Prince Abdulaziz proudly announced, “The AlGhat project has achieved a new world record low cost of electricity production from wind power at 1.56558 cents/kWh (5.87094 halalas/kWh) Levelized Cost of Electricity (LCOE), while the Wa’ad Alshamal project followed with a second world record low at 1.70187 cents/kWh (6.38201 halalas/kWh) LCOE.”
These projects will generate enough electricity to power 257,000 residential units annually, highlighting their significance in boosting the Kingdom’s energy efficiency.
Prince Abdulaziz extended his gratitude to King Salman and Crown Prince Mohammed bin Salman for their unwavering support and dedication to the energy sector, which has been instrumental in driving the Kingdom towards its Vision 2030 targets.
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As Saudi Arabia sets world record for cheap wind energy, the NREP, a strategic initiative under Vision 2030 and the King Salman Renewable Energy Initiative, aims to maximize Saudi Arabia’s renewable energy potential.
