• Masdar, EDF Renewables, and Nesma Company secure $1 billion solar project in Saudi Arabia.

• Consortium signs power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC) for a 1,100-megawatt solar facility.

• Solar plant to power over 190,000 homes and reduce annual carbon dioxide emissions by 1.8 million tonnes.

• Consortium clinches the project with a highly competitive bid of $16.84 per megawatt-hour.

The consortium of the UAE firm, France’s EDF Renewables and Saudi conglomerate Nesma Company, has signed a power purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC) to develop, build and operate the 1,100-megawatt facility that will power more than 190,000 homes a year, according to a statement. 

The Al Henakiyah solar power plant is also expected to displace more than 1.8 million tonnes of carbon dioxide every year. The consortium bagged the project after submitting the most competitive bid of $16.84 per megawatt hour. 

“Masdar is proud to have won the bid to develop the [plant], further strengthening our partnership with Saudi Arabia,” said Mohamed Jameel Ramahi, CEO of Masdar.

The solar facility is expected to reach financial close early next year and connect to the grid in 2025. 

“Together, we are geared to navigate the dynamic landscapes of clean energy enabling a sustainable and prosperous future for Saudi Arabia while supporting the Kingdom’s Vision 2030 to produce 50% of its electricity from renewable sources,” said Bruno Bensasson, Chairman and CEO of EDF Renewables and Group Senior Executive Vice President of Renewable Energies.”

Last month, Abu-Dhabi’s Masdar announced it is to purchase a 49 % stake in Spanish utility Iberdrola’s East Anglia 3, according to news reports.