Engie to develop 30MW solar plant at Saudi Arabia's Nadec City
Haradh project to be implemented by French firm under 25-year PPA, with operations to commence on 30 October, 2020
Saudi Arabia's Tadawul-listed National Agricultural Development Co (Nadec) and French utilities giant Engie will develop a 30MW solar power plant in Nadec City, Haradh, with work on the development to begin on 31 October, 2019.
According to Nadec’s stock market missive, the project is being implemented under a solar power purchase agreement (PPA) for a period of 25 years, and commercial operations on the plant are expected to commence on 31 October, 2020, with an operational trial period of 60 days.
In the disclosure, Nadec said: “Nadec will not seek any financing in respect of the project as it will not incur any capital or operational expenditure.”
The PPA entails to the purchase of energy from Engie at a fixed price of $0.03 (SAR0.09) per kWh.
Once operational, the solar project will reduce Nadec’s fuel consumption by 124,000 barrels per year, which will further result in a decline of 53,000 tonnes of annual carbon emissions.
Nadec said financial savings from the reduction in fuel consumption would begin from the date of operation “based on the fuel prices prevailing at the time”.