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TotalEnergies secures funding for a significant solar project in Saudi Arabia

TotalEnergies emerges as the winner of the solar power project during the third round of the Saudi's National Renewable Energy Program

Consortium has signed a PPA with the Saudi Power Procurement Company
Consortium has signed a PPA with the Saudi Power Procurement Company

A partnership composed of TotalEnergies from France, Toyota Tsusho from Japan, and Altaaqa Renewable Energy (Zahid Group) from Saudi Arabia has successfully secured financing for the establishment of a 119 mega watt (MW) solar photovoltaic power plant in Wadi Ad-Dawasir

This achievement marks an important milestone for the project, following the earlier final investment decision. The consortium has reached a financial agreement with local lenders APICORP and Riyadh Bank.

TotalEnergies emerged as the winner of this project during the third round of the Kingdom’s National Renewable Energy Program, which was initiated and supervised by the Ministry of Energy. To proceed with the development, the consortium has signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company.

The responsibilities of the consortium include financing, owning, and operating the photovoltaic power plant. The construction will be undertaken by the Chinese company SEPCO, and it is expected to be completed by early 2025 in the city of Wadi-Al-Dawasir, approximately 500 km southwest of Riyadh.

This achievement in Saudi Arabia adds to TotalEnergies’ portfolio, which already includes a large Solar Photovoltaic Power Plant in Iraq and Solar Renewables Independent Power Plants operating in Qatar and the UAE. These successes solidify TotalEnergies’ position as a major player in the renewable energy sector within the region.

Ahmed Tarzi, Country Chair of TotalEnergies Saudi Arabia, stated, “Our longstanding presence in Saudi Arabia allows us to actively contribute to the country’s energy transition towards renewable energies, aligning with its vision for 2030 and supporting the development of local champions.”

Since 1974, TotalEnergies has been actively involved in Saudi Arabia, primarily in the refining and petrochemical industries, as well as in marketing and retail segments.