Marubeni signs PPA for 300 MW Solar project in Saudi Arabia

Marubeni Corporation (“Marubeni”) signed a Power Purchase Agreement with the Saudi Power Procurement Company (SPPC) through a Special Purpose Company established with Al Jomaih Energy & Water Company Limited.

In March 2021, a loan agreement for limited-recourse project financing for the 300 MW Rabigh Solar PV IPP Project was signed, and EPC (Engineering, Procurement and Construction) work on the project proceeded the following month.

The loan is co-financed with  Japan Bank for International Cooperation, Mizuho Bank, Ltd and Al Rajhi Banking & Investment Corporation of Saudi Arabia, and the total co-financing amount is approximately US$157 million.

JBIC will provide project financing amounting to up to approximately US$78 million (JBIC portion) for the Rabigh Solar PV Plant.

The SPC will develop, construct, operate, and maintain the 300 MW capacity solar PV plant, which will be located in the Rabigh Industrial City of Makkah Province, on land leased by The Saudi Authority for Industrial Cities and Technology Zones, commonly known as MODON. SPPC will purchase the produced power for 25 years following the Commercial Operation Date. This project will be Marubeni’s first solar PV project in the Kingdom of Saudi Arabia.