Energy Policy with Global Significance: Saudi Arabia Awards 4,500 MW of Wind and Solar Projects at Record-Low Prices
Riyadh (Saudi Arabia) - Saudi Arabia is pushing ahead with the rapid expansion of renewable energy. In the sixth round of the National Renewable Energy Programme (NREP), the Kingdom has awarded five new large-scale wind and solar projects with a total capacity of 4,500 megawatts (MW) - including a wind project with the world’s lowest-ever levelized cost of electricity (LCOE) for wind energy.
World Record in Wind Energy: Dawadmi Project Sets New Benchmark
In October 2025, in the presence of Energy Minister Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, who also serves as Chairman of the Saudi Power Procurement Company (SPPC), five new projects were officially awarded.
The flagship project is the Dawadmi Wind IPP Plant in Riyadh Province. With a capacity of 1,500 MW and an LCOE of 1.33803 US cents per kWh (5.01760 halala/kWh), the project sets a new world record for the lowest cost of electricity generation from wind, according to SPPC.
The contract was awarded to a consortium consisting of Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy Company Ltd., and Etihad Water and Electricity Company PJSC (EtihadWE).
Solar Projects with Global Benchmark Performance
In addition to the record-setting wind farm, four large-scale solar projects with a combined capacity of 3,000 MW have been awarded. The largest is the Najran Solar Energy Project (1,400 MW), developed in partnership with Abu Dhabi Future Energy Company (Masdar).
Other projects awarded in the sixth tendering round include:
- Ad Darb Solar PV IPP Plant (600 MW, awarded to Masdar)
- Samtah Solar PV IPP Plant (600 MW, consortium of Saudi Electricity Company (SEC) and EDF Power Solutions International S.A.S.)
- As Sufun Solar PV IPP Plant (400 MW, consortium of Al Jomaih Energy & Water Company (AEW Holding) and TotalEnergies Renewables SAS)
Investment Environment and Strategic Importance
According to SPPC, the awarding of these projects underlines Saudi Arabia’s leadership role in the development of renewable energy and reflects the country’s highly competitive generation costs.
This success, SPPC stated, is due to the efficiency of Saudi Arabia’s financing and development models and the growing investor confidence in its renewable energy market. As the principal buyer of the awarded projects, SPPC is responsible for pre-development studies, tendering of generation projects, and the execution of Power Purchase Agreements (PPAs) with developers.
In this role, SPPC ensures the contractual offtake and payment guarantees for electricity generated by the Kingdom’s wind and solar projects.
By the end of 2025, the total capacity of tendered projects is expected to reach 64 GW. Following the completion of the sixth round, contracted capacity now totals 43.2 GW, of which 12.3 GW are already operational.
In July 2025, during the fifth tendering round, Saudi Arabia awarded projects worth USD 8.3 billion with a total capacity of 15,000 MW. Preparations are already underway for the seventh round, which will tender 5,300 MW of additional solar and wind capacity.
About the National Renewable Energy Programme (NREP)
The National Renewable Energy Programme (NREP) is a key pillar of Saudi Arabia’s Vision 2030, designed to promote economic diversification, local value creation, and job growth within the energy sector. Its goal is to raise the share of renewable energy to 50 percent of total electricity generation by 2030, complemented by high-efficiency gas power plants. The program envisions a total installed capacity of 130 GW, with an annual build-out of around 20 GW. Key stakeholders include the Public Investment Fund (PIF) and its subsidiaries such as Badeel, ACWA Power as the main developer and operator, and the Saudi Power Procurement Company (SPPC) as the central counterparty for Power Purchase Agreements (PPAs).
Source: IWR Online, 04 Nov 2025
