KEPCO Secures $892 Million Deal for Largest Wind Power Project in Saudi Arabia

The project is a first and a big win for KEPCO. This is the company’s first major project in the Middle East after previously working on a smaller wind power project, the Jordan Fujeij Wind (89.1 MW) project.

Korea Electric Power Corporation (KEPCO) and its partners have secured a major contract to build a wind power plant in Saudi Arabia. The wind farm will be a 1,500-megawatt (MW) project started by Saudi Arabia’s Power Public Procurement Service (SPPC). The project is valued at $892 million (around 1.24 trillion Korean won). It is the largest wind power project that SPPC has ever worked on.

The project is a first and a big win for KEPCO. This is the company’s first major project in the Middle East after previously working on a smaller wind power project, the Jordan Fujeij Wind (89.1 MW) project.

The wind farm construction will start in the second quarter of next year in Dawadmi, 247 kilometers west of Riyadh. The project site will cover about half the size of Seoul. The goal is to complete building the farm by the third quarter of 2028.

Developing the wind power project will use a Build-Own-Operate (BOO) model. The KEPCO-led group signed a 25-year power purchase agreement (PPA) with SPPC, and they have to secure sales revenue for the next 25 years. KEPCO holds a 40.01% share, along with the UAE’s Etihad Water and Electricity Authority (39.99%) and Saudi Nesma Renewable Energy (20%). KEPCO expects to generate roughly 2.7 trillion Korean won in sales and about 295 billion Korean won in dividends from this project.

Since Saudi Arabia plans to launch 20 GW of renewable energy projects every year, KEPCO sees this as a gateway to get future large-scale wind power opportunities. They aim to showcase their skills to deliver GW-class wind projects and expand into other sectors, including power infrastructure development.

On the same day that SPPC secured the wind project, it also selected bidders for the new solar project. These include the UAE’s Masdar, France’s EDF, and France’s TotalEnergies. In the presence of Prince Abdulaziz bin Salman, Minister of Energy and Chairman of the Board of SPPC, contracts were awarded for one wind project and four solar projects.

The Dawadmi Wind Energy Project set a new world record by producing wind power at the lowest cost. Meanwhile, the Najran Solar Energy Project set a new record by producing the world’s second-lowest solar power, following the Shuaiba 1 Project, which previously set the global benchmark at 1.04 US cents per kWh.

Together, the five projects have a total capacity of 4,500 MW. They involve investments totaling more than 9 billion Saudi riyals (about $2.4 billion). These awards are part of the sixth phase of the National Renewable Energy Program, which is managed by the Ministry of Energy.

The Dawadmi Wind IPP Plant in Riyadh Province (1,500 MW) was awarded to the KEPCO, Nesma Renewable Energy, and Etihad Water and Electricity consortium, achieving a record-low levelized cost of electricity (LCOE).

The Najran Solar Energy Project, in partnership with Masdar in the Najran region, will deliver 1,400 MW, the second-lowest globally for solar energy.

These awards further reaffirm that Saudi Arabia is a leader in renewable energy, as they can able to produce some of the world’s lowest levelized costs of electricity. The reason for the success is their efficient financing and development models, as well as the increase in investor confidence in the Kingdom.

By the end of 2025, Saudi Arabia will have issued tenders for renewable energy projects valued at 64 GW. After signing the phase six projects, the Kingdom will be committed to building 43.2 GW of contracted renewable capacity, with 12.3 GW already connected to the grid.