TotalEnergies Completes Financing for its First Solar Power Plant in Saudi Arabia
Ryiadh, June 26th, 2023 – The consortium comprising France's TotalEnergies, Japan's Toyota Tsusho and Saudi Arabia's Altaaqa Renewable Energy (Zahid Group) has completed financing for the development of a 119 MWp solar photovoltaic power plant in Wadi Ad-Dawasir. Following the final investment decision taken earlier, the financial close with local lenders APICORP and Riyadh Bank is a further important milestone for the project.
With this project, won by TotalEnergies in the third round of the Kingdom’s National Renewable Energy Program launched and overseen by the Ministry of Energy, the consortium has signed a Power Purchase Agreement (PPA) with the Saudi Power Procurement Company. The consortium will be responsible for financing, owning and operating the photovoltaic power plant, to be built by the Chinese company SEPCO by early 2025 in the city of Wadi-Al-Dawasir, some 500 km southwest of Riyadh.
Following the large Solar Photovoltaic Power Plant in Iraq awarded earlier this year, and with large Solar Renewables Independent Power Plants already operating in Qatar and the UAE, this first success in Saudi Arabia for TotalEnergies cements its position as a leading regional player in Renewables.
“TotalEnergies is active in Saudi Arabia since 1974, primarily in the refining, petrochemical industries and in the marketing and retails segments as well. Saudi Arabia is a close partner of Totalenergies and this project is another example of our successful multi-energy strategy, where our long presence in Saudi Arabia is enabling us to actively participate to the country energy transition to renewables energies in line with its vision 2030 and hence developing local champions as well” said Ahmed Tarzi, Country chair TotalEnergies Saudi Arabia.
TotalEnergies and renewables electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a portfolio of activities in electricity and renewables. By the first half of 2023, TotalEnergies' gross renewable electricity generation installed capacity was 18 GW. TotalEnergies will continue to expand this business to reach 35 GW of gross production capacity from renewable sources and storage by 2025, and then 100 GW by 2030 with the objective of being among the world's top 5 producers of electricity from wind and solar energy.
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.