Marubeni Winds its Way into Saudi Arabia's Renewable Energy Market

Japanese trading and investment giant Marubeni Corporation has landed a significant deal in Saudi Arabia's burgeoning renewable energy sector. The company secured a power purchase agreement (PPA) to construct two major wind farms with a combined capacity of 1. 1 gigawatts (GW). This marks the first foray by a Japanese firm into Saudi Arabia's wind energy space.

The agreement involves collaboration with the Saudi Power Procurement Company (SPPC) and Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company (Ajlan & Bros). The two wind farms – Al-Ghat and Waad Al-Shamal – will be located in Riyadh and Northern Borders provinces respectively. Al-Ghat will boast a capacity of 600 MW, while Waad Al-Shamal will generate 500 MW. Under the terms of the PPA, SPPC will purchase the electricity produced by these facilities for 25 years following their commercial launch.

This deal represents a major boost for Saudi Arabia's National Renewable Energy Program, which aims to diversify the country's energy mix and lessen its dependence on fossil fuels. The wind farms are expected to contribute significantly to this goal by providing clean and sustainable energy.

Marubeni is not new to the Saudi renewable energy scene. The company has previously participated in projects like the 300 MW Rabigh solar PV IPP, a rooftop solar PV project, a district cooling venture, and a clean hydrogen project. However, the Al-Ghat and Waad Al-Shamal wind farms signify their debut in the kingdom's wind energy sector.

The record-breaking price points secured for the power generated by these wind farms further sweetens the deal for Saudi Arabia. According to a statement from Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, the Al-Ghat project boasts the lowest global PPA price ever signed for wind power at 1. 57 cents/kWh. Waad Al-Shamal follows closely behind at 1. 70 cents/kWh, solidifying Saudi Arabia's position as a leader in cost-competitive renewable energy.

The Marubeni deal is a win-win for both parties. Saudi Arabia gains a significant boost to its clean energy ambitions at competitive rates, while Marubeni establishes a foothold in a promising new market. This collaboration has the potential to pave the way for further Japanese investment in Saudi Arabia's burgeoning renewable energy sector.

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