A 30-year power purchase agreement (PPA) for the 91 megawatts Layla PV Solar IPP in Al-Aflaja governorate of Riyadh province in Saudi Arabia, has officially been signed.
The contract was signed between Acwa Power subsidiary, Layla Solar Energy Company, and Saudi Power Procurement Company, the ‘Principal Buyer’ responsible for managing capacity and electrical energy produced in the Kingdom, including power purchases, IPP and renewable energy projects, and fuel supply agreements.
Acwa Power, in its filing to the Saudi bourse Tadawul noted that the US$ 107M agreement is inclusive of the construction, development, and operation of the Layla PV Solar IPP at its major site within the AL Aflaj governorate.
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ACWA Power’s stake in the Layla PV Solar IPP in Al-Aflaj
For the mega solar PV plant, Acwa Power revealed that it will have a 40.1% stake in the strategic clean energy project, with the financial impact of the contracted revenues projected once the project kicks off. Commercial operations of the solar facility are set to officially commence by the first quarter of 2024, during which the financial impact of the PPA on ACWA Power’s performance will be known.
Having submitted the lowest bid of 11.2 halala/KWh, ACWA Power was announced as the preferred bidder for the project, which was tendered as part of Round Three of the National Renewable Energy Program (NREP) by the Ministry of Energy.
