Saudi Arabia-based electric power generation company ACWA Power has commenced commercial operations at the 700MW Ar Rass 1 solar photovoltaic (PV) independent power plant (IPP) in Saudi Arabia.
Located in the Qassim province near Ar Rass city, the Saudi Arabian solar PV project is part of Round Three of the National Renewable Energy Program (NREP) by the Saudi Ministry of Energy.
The project is valued at SAR1.7bn ($453m). It was awarded to a consortium led by ACWA Power.
Other companies in the consortium are China’s SPIC Huanghe Hydropower Development and Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF)-owned Water and Electricity Holding Company (Badeel).
ACWA Power, which led the construction and engineering, will continue to oversee the operation and maintenance of the solar project. The Ar Rass 1 plant will deliver clean energy to the national grid.
The solar PV IPP will generate renewable energy by utilising bi-facial modules with tracking technology.
The solar plant is expected to deliver highly efficient performance and provide renewable energy to 132,000 households.
Moreover, the Ar Rass 1 solar plant will eliminate approximately 1.5 million tons of carbon dioxide emissions per year.
According to ACWA Power, the Ar Rass 1 solar PV IPP obtained the commercial operations certificate last week.
The company expects the financial impact of the solar PV project to be reflected from the second quarter of 2024.
In March 2022, ACWA Power signed a power purchase agreement (PPA) with the Saudi Power Procurement Company (SPPC) for the solar project. The PPA was agreed for a term of 25 years.
In line with the agreement, SPPC acts as the sole off-taker of the Ar Rass 1 solar PV IPP.
In July this year, ACWA Power announced the completion of the dry financial close for its fully-owned $533m Tashkent Riverside project in Yuqori-Chirchiq, located in Uzbekistan’s Tashkent Region. The project comprises a 200MW solar PV plant and a 500MWh battery energy storage system (BESS).
