Saudi NADEC, Engie ink 30 MW solar energy project in Haradh

Riyadh –  The board of directors of the National Agricultural Development Company (NADEC) has approved to enter into a solar power purchase agreement (PPA) with French world energy actor, Engie, to launch a 30 megawatts (MW) solar power project at NADEC City in Haradh.

The 25-year contract will integrate the 30 MW project with NADEC’s current energy generation resources, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The PPA provides for the purchase of energy from Engie Company at a fixed price of SAR 0.9 per kilowatts per hour.

The Saudi firm will not seek any financing in respect of the project as it will not incur any capital or operational expenditure.

“The implementation of this project is expected to reduce NADEC’s fuel consumption within limits 124,000 barrels per year, which will lead to reducing carbon emissions by 53 million kgs per year,” the statement highlighted.

The project is expected to start on 31 October, with a targeted commercial operation date on 31 October with an operational trial period of 60 days.

NADEC noted that the financial savings from the reduction in fuel consumption will start gradually from the date of operation based on the fuel prices prevailing at the time.

It is worth noting that NADEC’s net profits fell by 63.7% year-on-year to SAR 7.07 million during the second quarter of 2019.