In a significant stride for renewable energy in the Middle East, Marubeni Corporation, a prominent Japanese trading and investment entity, has finalized an agreement with the Saudi Power Procurement Company (SPPC) to establish two substantial wind power ventures within the Kingdom of Saudi Arabia. This initiative marks a substantial collaboration with the local firm Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company – Ajlan & Bros.
The accord encompasses the construction of the Al-Ghat and Waad Al-Shamal Wind IPP Projects, which, combined, are poised to inject 1.1 GW of clean power into the Saudi electrical grid. The Al-Ghat project, located in the Riyadh Province, boasts a capacity of 600 MW, whereas the Waad Al-Shamal project, situated in the Northern Borders Province, will contribute an additional 500 MW. SPPC is set to procure the electricity emanating from these installations over a 25-year period following the commencement of their commercial operations.
Marubeni has identified Saudi Arabia as a country of significant growth potential and a primary market of interest within the broader MENA region, particularly in the domain of power generation. These ventures represent the inaugural foray of a Japanese entity into the Saudi wind energy sector.
Prior engagements of Marubeni in Saudi Arabia’s renewable sector include involvement in the Rabigh Solar PV IPP Project, which generates 300 MW, alongside other projects in rooftop solar, district cooling, and clean hydrogen production.
The Al-Ghat and Waad Al-Shamal wind projects are projected to substantially enhance the renewable energy infrastructure of Saudi Arabia. This advancement aligns with the nation’s Vision 2030 objectives, which emphasize energy diversification and a shift away from reliance on hydrocarbons.