SEC signs 2.5bn riyal green power plant deal.
Spanish solar firm Inteq Energia and the Saudi Services for Electro Mechanic Works (SSEM) won the bids for the 605-megawatt (MW) plant, which will produce 43 MW of solar energy.
Saudi Electricity Co. (SEC), the largest electric utility in the GCC, has contracted two companies for 2.5 billion riyals ($667 million) to build and operate the Green Duba power plant.
Spanish solar firm Inteq Energia and the Saudi Services for Electro Mechanic Works (SSEM) won the bids for the 605-megawatt (MW) plant, which will produce 43 MW of solar energy, reported Reuters on Monday, quoting state news agency SPA.
Green Duba, planned to be built near Tabuk on the Red Sea coast, will be Saudi Arabia's first fossil-fuel fired power plant to incorporate solar energy production to boost efficiency - known as an integrated solar combined cycle (ISCC) plant.
ISCC plants reduce emissions of climate-warming carbon by increasing the amount of steam available for driving power generation turbines, without having to burn more gas or oil.
The solar portion of the plant will save the equivalent of 3 to 4 million barrels of fuel over the life of the project and reduce carbon emissions by between 40 thousand and 50 thousand tonnes per year, said SEC Chairman Saleh Bin Hussein al-Awaji.
Saudi Arabia, already one of the world's largest carbon emitters per capita according to the World Bank, faces surging demand of 6 to 8 percent per year for energy as its population increases rapidly and the economy grows.
The country is aiming to become the world’s foremost market for renewable energy with an aggressive investment budget of $109 billion. By 2032, the country strives to generate as much as a third of the Kingdom’s energy demands using renewable energy (54 GW).