November 21 (Renewables Now) - Construction has been launched on the 300-MW Sakaka solar photovoltaic (PV) project in Saudi Arabia, owned by a tie-up led by ACWA Power.
The event, announced by ACWA Power today, took place just after the project’s financial closure was achieved last week. The consortium behind the SAR-1.2-billion (USD 320m/EUR 281m) scheme, which includes ACWA Power and Saudi contractor and investor AlGihaz Holding Company, expect commercial operations at the plant to begin at the end of next year.
The ACWA Power-led consortium has formed a new firm called Sakaka Solar Energy Company (SSEC) in which ACWA Power holds a 70% stake. The tie-up was awarded the 300-MW independent power project (IPP) in January 2018 at a tariff of USD 0.0234 (EUR 0.0205) per kWh.
Once up and running, the Sakaka solar park will be able to generate enough electricity to meet the demand of around 45,000 homes, saving 430,000 carbon dioxide (CO2) emissions annually. It will operate under a 25-year power purchase agreement (PPA) with Saudi Power Procurement Company (SPPC). A consortium of Mahindra Susten and Chint has been picked as the engineering, procurement and construction (EPC) contractor on the project.
(SAR 1.0 = USD 0.267/EUR 0.234)
(USD 1.0 = EUR 0.877)