Southern Province Cement Company has signed a solar energy power purchase agreement (PPA) with Tarshid Energy Solutions Company for its Bisha Cement Plant.

The corporate PPA is for 25 years, the company said in a statement to the Saudi stock exchange on Sunday.

The cement producer will pay an average annual payment of approximately 4  million Saudi riyals for the period.

The energy will be purchased at a cost lower than the company's current electricity generation, the statement said without giving any details. 

Southern Cement said it will not require funding for the project, as it will not incur any capital or operational expenses.

Construction work on the project is expected to begin on 1 October, with the solar power generation system expected to be operational in the third quarter of 2026. 

No details were shared on the capacity of the solar power plant. 

Tarshid (National Energy Services Company) was established  in 2017 by the Public Investment Fund (PIF) to develop the energy services sector in the Kingdom،

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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