Business & Money | Monday 25 March, 2019 4:09 am |

The Kingdom is planning to build a 2,600 megawatts solar project in Makkah to optimize the use of hydrocarbon and mineral resources to achieve sustainable development of the national economy.

A memorandum of understanding to this effect was signed on Sunday by Makkah Emir Prince Khaled Al-Faisal and Minister of Energy, Industry and Mineral Resources Khalid Al-Falih of the second session of Makkah Economic Forum.

The 2,600-MW Faisaliah Solar Power Project is being developed by the Ministry of Energy in co-ordination with Development Authority of Makkah and is set to be implemented in stages.

As per the MoU, 600 MW will be offered by the Office of Renewable Energy Projects Development (Repdo) in a public tender this year, while the Public Investment Fund and its partners will implement 2,000 MW directly.

This is an important step forward to achieve the strategic goals of renewable energy in the Kingdom, and the optimal utilization of energy and resources in line with the Saudi Vision 2030, Falih said after signing the MoU.

Saudi Arabia, which is moving away from burning crude for power generation, has plans to increase power generation from renewables.

About 9.5GW of solar and wind capacities had been earlier earmarked for development by 2023.

A contract was awarded earlier this year to develop a 400MW wind project in the north.

Last year the Kingdom also awarded a 300-MW utility-scale photovoltaic solar plant to be built in the northern Al Jouf area.