CEEC signs EPC contract for 2GW Haden PV plant in Saudi Arabia

By Carrie Xiao
August 14, 2024
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The Al Shubach project in Saudi Arabia.
The deal is valued at approximately US$972 million. Image: China Energy Engineering Corporation.

A consortium led by the China Energy Engineering Corporation (CEEC) has signed an engineering, procurement and construction (EPC) contract with Saudi Arabian organisation Buraiq Renewable Energy for the 2GW Haden PV project in Saudi Arabia.

The deal is a multi-party arrangement, with the CEEC leading a consortium comprised of its subsidiaries: the CEEC International Construction Group, the CEEC Guangdong Thermal Power Engineering Company and the Northwest Electric Power Design Institute of the China Power Engineering Consulting Group. Buraiq Renewable Energy, meanwhile, was jointly established by ACWA Power, the Saudi Public Investment Fund and the Saudi Aramco Power Company.

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The contract value is approximately US$972 million (RMB6.979 billion). The project is in the western part of Saudi Arabia, about 93km northeast of Taif city, in Makkah province, and will have a total installed capacity of 2GW.

It is scheduled to achieve commercial operation in early 2027. The project contract includes engineering design, equipment procurement, transportation and installation, civil construction, transmission lines and substations construction, grid connection and commissioning.

According to the CEEC, the project team has already entered the site. Upon project completion, it is expected that the total power generated over 25 years will be around 156.189 billion kWh, with carbon dioxide emissions reduced by nearly 147 million tons, as Saudi Arabia looks to reach net zero emissions by 2060.

Prior to this deal, the CEEC had also participated in other Saudi Arabian projects, including a 2.6GW PV project in AI Shuaibah and a 300MW PV project in Rabigh.

Saudi Arabia’s “Vision 2030” programme has implemented a target to increase the proportion of renewable energy to 50% of the country’s total energy mix by 2030, most of which will be provided by solar facilities. In December 2023, Saudi Arabia announced that from 2024 onwards, it will tender 20GW of renewable energy projects to reach a total installed capacity of 130GW by 2030.

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