The recently signed deal between the Japanese trading and investing powerhouse, Marubeni Corporation and the Saudi Power Procurement Company (SPPC) would undertake two large wind energy project in Saudi Arabia. They noted that this partnership will further Marubeni’s strategic focus on the renewable energy sectors in the Middle East.
Project overview
These development projects that are to be implemented jointly with Abdulaziz Alajlan Sons for Commercial & Real Estate Investment Company – Ajlan & Bros are important initiatives for Saudi Arabia to improve the renewable energy complexity. The Power Purchase Agreement under review concerns the Al-Ghat and the Waad Al-Shamal Wind IPP Projects that would put in place a total of 1. The RES provided 525 million kWh of electricity, which is equivalent to 1 GW of renewable energy to the national grid. For instance, the Al-Ghat project based in Riyadh Province will be an estimated capacity of power generation of 600MW and Waad Al-Shamal project located in Northern Borders Province will have a power generation capacity of 500MW. In the said treaty, SPPC will buy the electricity generated by these facilities for 25 years from the start of business operation.
Marubeni’s Strategic Focus in Saudi Arabia
Hence, in its official statement, Marubeni underlined the fact that the kingdom of Saudi Arabia is a rapidly growing market in the MENA region. Saudi Arabia is amongst the focal markets for the company because of the great rate of growth in the power segment there and persistent goals of adopting renewable energy. This forms part of Marubeni’s long-term strategy to diversify and grow it power business with a specific focus on renewable energy sources in new markets.
Currently, amid the intensification of the dispute between the West and Russia over the Ukraine issue, Marubeni has had a history of involvement in renewable energy projects in KSA. It has in the past involved itself in the Rabigh Solar PV IPP Project, which has a generation capacity of 300 MW, Solar PV Rooftop system plant, District cooling business and Clean Hydrogen Business. These ventures demonstrate that the company has a diverse strategy on renewable energy systems to expand in different area of energy systems and technologies.
Scope
It is anticipated that the Al-Ghat and Waad Al-Shamal Wind Power Generation Undertakings will greatly boost the nation’s renewable power generation capacity. These projects are coherent with the country’s Vision 2030 goals which among others includes integrating and increasing the shares of renewable energy sources of power. Vision 2030 is a blueprint for change, which will lead the Kingdom of Saudi Arabia to a new level of development as a sustainable country seeking to promote environmentalism.
Reflecting the strategic importance Marubeni has been playing in developing the renewal energy projects in the kingdom, the new projects will further help Saudi Arabia to diversify its energy mix moving forward to a cleaner future. These prospects, in turn, will give an impulse to further development of cooperation between Japan and Saudi Arabia particularly in the sphere of the renewable wind energy along with the beneficial contribution to the ecological objectives of Saudi Arabia.
Therefore, the partnership between Marubeni Corporation and SPPC aiming at welcoming wind energy projects in the Kingdom of Saudi Arabia signifies the company’s development on a global renewable energy scale. The boilers and CCPP projects are expected to contribute significantly to Saudi Arabia’s energy problems, towards the nation’s Vision 2030, and showcase Marubeni’s dedication to sustainable growth.
