Saudi Arabia Achieves New Global Record for Lowest Wind Power Cost in 4.5 GW Renewables Deal

Saudi Arabia Sets New Benchmark in Wind Energy Costs

The Saudi Power Procurement Company (SPPC) has announced the signing of power purchase agreements (PPAs) for a substantial 4.5 gigawatts (GW) of renewable energy projects. This landmark deal includes a wind power project that has established a new global record for the lowest cost of wind energy generation, priced at an unprecedented $13.38 per megawatt-hour (MWh), or 1.33803 cents per kilowatt-hour (kWh).

The announcement, made in late October 2025, highlights the Kingdom's accelerated efforts to diversify its energy mix and achieve its ambitious sustainability goals under Vision 2030. The total investment across these five projects—one wind and four solar—exceeds SAR 9 billion (approximately USD 2.4 billion).

The Record-Breaking Dawadmi Wind Project

The new global benchmark for wind power cost was achieved by the 1.5 GW Dawadmi Wind IPP Plant, located in the Riyadh Province. This project was awarded to a consortium comprising Korea Electric Power Corporation (KEPCO), Nesma Renewable Energy Company Ltd., and Etihad Water and Electricity Company PJSC (EtihadWE). This achievement significantly surpasses previous global records, including those recently set by Saudi Arabia's own Al-Ghat and Wa'ad Alshamal wind projects in May 2024, which had costs of 1.56558 cents/kWh and 1.70187 cents/kWh, respectively.

Diverse Portfolio of Renewable Energy Projects

In addition to the Dawadmi wind project, the 4.5 GW capacity includes four major solar photovoltaic (PV) plants, strategically distributed across various provinces. These projects further solidify Saudi Arabia's position as a leader in low-cost renewable energy development:

• The 1.4 GW Najran Solar Energy Project in the Najran region, developed in partnership with Masdar, achieved the world's second-lowest cost for solar energy, following the Kingdom's own Shuaiba 1 project.
• The 600 MW Ad Darb Solar PV IPP Plant in Jazan Province, also awarded to Masdar.
• The 600 MW Samtah Solar PV IPP Plant in Jazan Province, awarded to a consortium of Saudi Electricity Company (SEC) and EDF POWER SOLUTIONS INTERNATIONAL SAS.
• The 400 MW As Sufun Solar Project in Hail Province, awarded to a consortium of Al Jomaih Energy & Water Company (AEW) and TotalEnergies Renewables.

Advancing Vision 2030 and National Renewable Energy Program

These projects are integral to the sixth phase of the National Renewable Energy Program (NREP), overseen by the Ministry of Energy. The program is a cornerstone of Saudi Vision 2030, which aims to increase the share of renewable energy in the Kingdom's electricity mix to 50% by the end of the decade. This strategic shift is designed to reduce reliance on liquid fuels for electricity generation and enhance the nation's energy security and sustainability.

The consistent achievement of highly competitive Levelized Costs of Electricity (LCOE) underscores Saudi Arabia's commitment to becoming a global hub for clean energy production and innovation, attracting significant international investment and expertise in the renewable energy sector.