Power China Signs Contract for 120MW Photovoltaic Power Project in Saudi Arabia

In April 2023, the subsidiary of Power Construction Corporation of China (Power China), Shandong Electric Power Construction Corporation (SEPCO), officially signed an EPC (Engineering, Procurement, and Construction) contract with France’s TotalEnergies for the Wadi ad-Dawasir 120MW photovoltaic power project in Saudi Arabia.

The Wadi ad-Dawasir (WAD) project is located in the southwestern region of Riyadh Province, approximately 900 kilometers from the Red Sea port of Jeddah in western Saudi Arabia. The scope of work involves the construction of a 118.997MW photovoltaic power station, including the establishment of a substation for voltage elevation and the expansion and transformation of the end-to-end Saudi Electricity Company (SEC) substation (ESF).

This project is one of the successful bids in the third round of public tenders under Saudi Arabia’s “National Renewable Energy Program.” TotalEnergies, as the developer, won the project in a BOO (Build-Operate-Own) model and signed a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company. The total investment for the project is approximately 120 million USD, and the project requires a localization rate of 16-18%.

TotalEnergies is the world’s fourth-largest oil and gas company, founded in 1924, with operations spanning over 120 countries. The company is involved in various energy sectors, including petroleum, biofuels, natural gas, green gas, renewable energy, and electricity.

This project marks the first strategic cooperation between SEPCO and TotalEnergies and represents China Energy Engineering Corporation’s first standalone photovoltaic project in Saudi Arabia. Additionally, it is a significant marketing achievement for Shandong Electric Power Construction Corporation in the international high-end market, following its success with Saudi Aramco.