Nadec – KSA’s first captive solar PV project

ENGIE successfully developed and closed the first corporate power purchase agreement (“PPA”) project in the Middle East: the NADEC solar photovoltaic IPP. With this project, ENGIE is leading the way in establishing an innovative framework allowing intensive energy industries’ and commercial services to directly procure renewable energies through corporate PPAs. Such project triggers the competitivity of solar energy as an alternative to fossil fuel even for medium size PV power plants. Moreover, this project has generated wide interest resulting in the development of a pipeline of similar opportunities across the MENA region, joining the global effort to reduce GHGs emissions, while contributing to the development of renewable energy planned by Saudi Vision 2030.

Summary

This project was launched in July 2018 by one of the largest agricultural and food-processing company in the GCC, to procure electricity from a 30 MWp solar PV facility in NADEC City, Saudi Arabia. As an alternative to the company’s fossil fuel consumption (1.4 TWh/year), ENGIE established what constitutes a first utility-scale corporate PPA in the region, between a developer and an end-customer. This project initiates a shift in energy consumers procurement strategies. It sets the path for IPP developers to put their expertise at the disposal of private and public energy consumers to reach their sustainability objectives. Effectively, this project will reduce NADEC’s fuel consumption by 124.000 barrels/year, which will result in a decline of 53.000 tons of annual carbon emissions, thus fully embracing Saudi Vision 2030.

Scope of Work

The scope of work includes the provision of electricity from a 30 MWp solar PV facility to NADEC city’s facilities.

Client: NADEC

Value: Confidential

Location: NADEC City, Saudi Arabia

Services: Solar Power

Terms: Build Own Operate (“BOO”) basis for 25 years