Saudi Arabia’s private utility Acwa Power said it has received the Initial Commercial Operation certificate for the first phase of its 1.5 GW Sudair solar PV in the country, according to a disclosure to Tadawul on Thursday. The approval for Group 1 of the project — which represents 50% of the plant capacity — was granted by the Saudi Power Procurement Company (SPPC), according to the disclosure.

About Sudair: The project is set to become one of the largest single-contracted solar PV plants globally and the largest of its kind in Saudi Arabia, according to the project’s overview. Sudair is the first project under the country’s Public Investment Fund’s (PIF) renewable energy program, and has recorded the second-lowest cost globally for solar PV electricity production at USD 1.239 cents/kwh.

REMEMBER- A consortium of Acwa Power, PIF’s Badeel, and Saudi Aramco Power Company (SAPCO) established the Sudair One Renewable Energy Company in August 2021. The SAR 3.4 bn company signed a PPA with the SPPC for 25 years as an offtaker for the 1.5 GW Sudair solar plant, which achieved financial close in the same month in 2021.

Big benefits: Sudair PV IPP will have the capacity to power 185k households and offset nearly 2.9 mn tons of emissions per year, according to Acwa Power.

The region has been accelerating its approvals of mega-renewable project development: Dubai-based Amea Power received approval from Egypt’s cabinet to expand its existing solar power projects in Aswan by 1 GW, and its Ras Ghareb wind plant by 500 MW, according to a recent cabinet statement. Amunet — an Egyptian special purpose vehicle that is 60% owned by Amea Power and 40% owned by Japan’s Sumitomo — is currently building the USD 709 mn Ras Ghareb wind farm in Egypt with a capacity of 505 MW and operation start scheduled for 2025. Construction of Amea Power’s 560 MW Abydos solar plant near Kom Ombo in Aswan is also ongoing, and is planned to launch by mid-2024. Both projects secured funding from the IFC at the end of last year, but it is unclear who will finance the newly approved capacities.