Saudi Power Procurement Company Signs PPA for Yanbu Project

Deal News | Jul 02, 2025 | Zawya

Saudi Power Procurement Company Signs PPA for Yanbu Project

Saudi Power Procurement Company (SPPC) has entered a power purchase agreement (PPA) for the 700MW Yanbu wind project, located in the Al-Medina-Al-Munawwarah region of Saudi Arabia. The agreement was signed with a consortium led by Japan's Marubeni Corporation and Saudi Arabia's Ajlan & Bros Holding. The state-owned SPPC announced this via a post on social media platform X. The project, developed at a cost exceeding 1.7 billion Saudi riyals ($458 million), will deliver electricity at a levelized cost of 6.4 halalas ($1.72) per kilowatt-hour. Although the PPA duration was not disclosed, SPPC had previously signed two 25-year PPAs with Marubeni-led consortia for the AlGhat and Waad Alshamal wind projects totaling 1,100 MW.

Sectors

  • Renewable Energy
  • Power Purchase Agreements

Geography

  • Saudi Arabia – The location of the Yanbu wind energy project and the primary area of operation for SPPC and the Marubeni consortium.
  • Japan – Marubeni Corporation, part of the consortium for the project, is based in Japan.

Industry

  • Renewable Energy – The article discusses a power purchase agreement for a wind energy project, indicating a significant development in the renewable energy sector.
  • Power Purchase Agreements – The main focus of the article is the signing of a power purchase agreement for a large-scale wind energy project.

Financials

  • 1.7 billion Saudi riyals ($458 million) – The development cost of the Yanbu wind energy project.
  • 6.4 halalas ($1.72) per kilowatt-hour (kWh) – The levelized cost of electricity for the Yanbu wind project.

Participants

NameRoleTypeDescription
Saudi Power Procurement Company (SPPC)Principal BuyerCompanySaudi state-owned company responsible for procuring power from the project.
Marubeni CorporationConsortium LeaderCompanyJapanese company leading the consortium for the Yanbu wind project.
Ajlan & Bros HoldingConsortium PartnerCompanySaudi Arabian firm partnering in the consortium with Marubeni Corporation.