Saudi foodmaker turns to Engie for 30MW of solar supply

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
Saudi Arabia is expected to become one of the world's solar growth engines, installing 1-5GW every year by 2024 (Credit: Pixabay)

Engie has secured a power purchase agreement (PPA) for a solar plant to back the operations of Saudi Arabia’s self-styled largest listed food group.

The board of directors of NADEC, a maker of dairy products, juices and others, has rubberstamped a deal to procure power from a 30MW plant Enel will deploy in the kingdom’s east.

The installation in question is slated for development in Haradh city, where NADEC runs a complex featuring R&D centres and others.

The PPA, covering a 25-year period, will see solar power sold to NADEC at a fixed price of 0.094 riyals per kWh (around US$0.025/kWh).

In a statement, the food and beverage group said “it will not seek any financing in respect of the project as it will not incur any capital or operational expenditure”.

The 30MW development will get formally underway on 31 October 2019. The plan, NADEC said, is to launch commercial operations on the same date next year, starting with a 60-day trial period.

Once live, Engie’s scheme will slash NADEC’s carbon emissions by 53 million kilograms and fuel use by 124,000 barrels a year, according to its estimates.

For Engie, the Saudi Arabia project adds to its solar pipeline beyond France, with recent progress with a 60MW duo in Senegal and a 746MW auction-backed pipeline in Mexico.

The firm manages a 1.85GW solar portfolio across the globe and claims to be France’s top industry player, at a reported 12% market share.

Wood Mackenzie expects Saudi Arabia to become one of 12 new “engines” driving solar growth worldwide, joining the likes of France, Taiwan, United Arab Emirates and Ukraine.

If the consultancy’s predictions come to pass, the Kingdom will be – as will the rest in the 12-strong group of countries – add 1-5GW of PV installations every year by 2024.

Read Next

July 30, 2021
Anglo-Australian mining company BHP, in partnership with Canada’s TransAlta Renewables, is to build two solar farms and a battery storage system to help power its Mt Keith and Leinster nickel mines in Western Australia
July 7, 2021
SmartestEnergy Australia has signed a PPA with Providence Asset Group, to deliver 500GWh of solar power into the national electricity market.
July 1, 2021
Engie has been awarded rights to develop two hybrid projects in Chile that will combine solar, wind and battery storage and have a combined capacity of 1.5GW.
June 30, 2021
Renewables solutions provider Crossover Energy Partners is to oversee the development and operation of clean energy projects alongside investment firm KKR as part of a new collaboration between the companies announced today (30 June).
June 29, 2021
A round-up of the latest news from the US PV sector, as commercial operations begin at a plant in the Nevada desert developed by Invenergy, and the Solar Energy Industries Association adds new companies to its board of directors.
June 7, 2021
Duke Energy Sustainable Solutions has announced that construction has started on its 250MW Pisgah Ridge solar project in Navarro County, Texas.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021