Saudi Power Procurement Company (SPPC) has framed a milestone by signing a 25‑year power-purchase agreement with a consortium led by Japan’s Marubeni and Ajlan & Bros for the 700 MW Yanbu wind project, set in the Al-Madinah Al-Munawwarah region. The deal secures an LCOE of just SAR 64.6/MWh (USD 17.22/MWh), underscoring the Kingdom’s commitment to low-cost clean energy. The project, valued at over SAR 1.7 billion (~USD 458 million), marks the latest in a string of record-setting wind ventures under Saudi Arabia’s National Renewable Energy Programme (NREP).
The first contract, covering the 600 MW Al Ghat wind farm, achieved a record-low LCOE of just USD 15.655 /MWh, while the 500 MW Wa’ad Al Shamal project followed close behind with an impressive USD 17.018 /MWh. These agreements, part of Round 4 of Saudi Arabia’s National Renewable Energy Program, not only broke previous cost benchmarks but also signalled SPPC’s aggressive strategy to secure highly competitive renewable capacity and attract stable foreign investment.
Building momentum: Saudi wind portfolio
This is part of a broader strategy:
- Dumat Al Jandal (400 MW), Saudi’s first utility-scale wind farm, began feeding the grid in August 2021 and powers around 70,000 homes, slashing carbon emissions by nearly 880,000 t CO₂/year.
- SPPC’s 6th NREP round in November 2024 invited bids for an additional 1,500 MW in solar and wind capacity.
- The Public Investment Fund and ACWA Power are now prepping a massive 3 GW package of wind farms, further underscoring national ambition.
These efforts align with Saudi Vision 2030, which targets 50% renewable electricity by 2030, translating to 100–130 GW of clean-energy projects nationwide.
Why this matters
- Ultra-low costs – Sub‑$18/MWh LCOEs mark Saudi as a world leader in affordable wind energy.
- Scale & diversification – From 400 MW in 2021 to over 2.2 GW under PPA, and more in the pipeline, wind is surging.
- Policy + finance synergy – Long-term PPAs and RFQs signal strong state commitment, luring global developers.
- Strategic mix growth – Blending wind with solar and storage, Saudi is crafting a more diversified and resilient energy grid.
Looking ahead
- Yanbu’s 700 MW is expected online by 2027–28, further expanding the Kingdom’s clean-energy share.
- SPPC’s upcoming rounds could yield tens of gigawatts more in wind capacity within years.
- As grid integration technologies and storage mature, renewables’ share in electricity demand is set to climb significantly.
