Image: FAS Energy
Renewable energy company FAS Energy, a unit of Saudi industrial group Fawaz Al Hokair Group, and Tokyo-based conglomerate, Marubeni Corporation, have secured a project development agreement for a 52 MW rooftop PV project portfolio to be deployed across several locations in Saudi Arabia.
"The deal was closed recently," FAS Energy Solar CEO, Marcus H. Schrauf, told pv magazine. "I see our work at FAS Energy as directly implementing the call for action at COP28 of tripling renewable energy capacity. We deliver what the parties request. We are supporting the creation of a market here in Saudi Arabia and we encourage industry participants to follow suit.”
The off-taker is Cenomi Centers, which is the largest owner and operator of shopping malls in the country.
The project will be built in multiple locations spread across Saudi Arabia and will consist of both rooftop and carport arrays. "Each of the systems will sell power to Cenomi through an individual PPA," Schrauf Explained, noting that cities such as Jeddah, Riyadh, Khobar, Medina, and Mecca are included among the selected locations.
FAS Energy and Marubeni will own and operate the solar facilities through a 50%-50% joint venture. "We still haven''t finalized the selection of contractors and module and inverter procurement," Schrauf added. "But that is going to happen in early 2024."
Although the two companies didn''t disclose the financial terms and purchase price of the PPAs, Schrauf explained that the agreed price is slightly below current energy prices in Saudi Arabia.
"But is guaranteed for 20 years, which enables companies to make corporate and financial planning," he said. "That''s exactly the rationale for a lot of clients that we''ve seen globally. They want to be able to forecast their electricity pricing."
The CEO also stressed that, despite the relatively low prices of the Saudi energy market, there are a lot of very positive mitigating factors. "The first and foremost the high irradiation that you have here in Saudi Arabia," he said. "And if you add to that economies of scale, as we did with this project portfolio, you can achieve a significantly low LCOE, also in C&I projects."
More articles from Emiliano Bellini
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*Disclaimer: List of key companies in no particular order
ACWA Power, Alfanar Group, Abu Dhabi Future Energy Company (Masdar), Electricite de France SA, Enel SpA, Engie SA and Riyadh Renewable Energy Co
Saudi Arabia''s renewable energy market is experiencing a renaissance, driven by ambitious national targets, abundant resources, and a strategic shift towards diversifying its energy mix. This has ignited a dynamic competitive landscape with diverse players vying for market share.
Key Players and Strategies:
• Local Developers: ACWA Power, a leading developer-investor, leverages its strong track record and government partnerships to secure major projects like Sakaka PV (1,200 MW) and Dumat Al-Jandal Wind (800 MW). Others like Najm Solar and Yellow Door Energy focus on distributed solar solutions, catering to growing commercial and industrial demand.
• International Developers: Global giants like EDF Renewables, Engie, and Iberdrola bring expertise and financing muscle, attracting investors through international partnerships and competitive bids. JinkoPower, a Chinese solar giant, entered the market through a joint venture with Aljomaih Holding, showcasing strategic collaborations.
• Traditional Utilities: Saudi Electricity Company (SEC), the national utility, is venturing into renewables through subsidiary SEC Renewables, while Aramco, the oil giant, has invested in utility-scale projects like Dumat wind. Their existing infrastructure and customer base offer them a unique advantage.
• Technology & Engineering Firms: International firms like GE Renewable Energy and Siemens Gamesa are providing turbines, storage solutions, and grid integration technologies, partnering with developers for project execution.
Market Share Analysis Factors:
• Financial Feasibility: Competitive bidding mechanisms like feed-in tariffs and reverse auctions are driving cost-efficiency. Players with competitive financing models and lower levelized cost of energy (LCOE) will secure projects.
• Technology Expertise: Technological advancements in renewables are rapidly evolving. Players offering innovative solutions like high-efficiency panels, hybrid projects, and advanced grid management systems will gain an edge.
• Local Presence and Partnerships: Understanding local regulations, building strong relationships with government agencies and local communities, and establishing collaborations with Saudi companies are crucial for success.
• Sustainability Focus: Compliance with environmental and social sustainability standards is becoming increasingly important. Players showcasing strong ESG credentials will attract investors and win public favor.
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