Saudi Arabia has achieved new world records in reducing the cost of producing electricity from wind energy

Prince Abdulaziz bin Salman, Saudi Arabia's Minister of Energy, declared that the Al-Ghat and Wa'ad Alshamal projects have allowed the country to set new global records for the lowest cost of producing electricity from wind power. On the fringes of the Saudi-Japan Vision 2030 Business Forum in Tokyo on Tuesday, he signed energy agreements. "This great step would support the Kingdom's plans to raise the share of renewable energy to 50% of the electricity mix by 2030," he said.

Saudi Power Procurement Company (primary buyer) and the consortium led by Japan's MARUBENI Corporation have signed two power purchase agreements as part of Round 4 of the Saudi National Renewable Energy Program (NREP), which is overseen by the Ministry of Energy. The agreements are for the purchase of power from the 600 MW AlGhat Wind Project and the 500 MW Wa’ad Alshamal Wind Project. Following a public competition with five proposals for each project, the agreements were signed. In terms of the total cost of producing electricity, both projects set new global records for wind energy projects.

The National Renewable Energy Program (NREP) is a strategic effort under Vision 2030 and the King Salman Renewable Energy effort. Its goal is to make the most of Saudi Arabia's renewable energy resources. In light of the objectives set forth in Vision 2030, which include establishing the renewable energy industry and promoting the growth of this promising sector while striving to fulfill the Kingdom's commitments to reducing carbon dioxide emissions, the program lays out an organized and specific road map to diversify local energy sources, stimulate economic development, and provide sustainable economic stability to the Kingdom. 

Saudi Arabia intends to generate 58.7 gigawatts of renewable energy by 2030, of which the sun will supply roughly 40 gigawatts, according to data from the King Abdullah Petroleum Studies and Research Center (KAPSARC).