Shandong Electric Power Construction, or Sepco for short, has secured the major contract for building the 300 MWac photovoltaic power plant in Rabigh, Saudi Arabia.

The Rabigh 2 is one of the major projects Saudi Arabia employs to diversify energy resources and, therefore, diminish the reliance on liquid fuels.

As discussed above, the transaction deal is a 300 MWac photovoltaic power plant. A 33kV/110kV booster station and a 110 kV overhead line will also be constructed as a substructure. Under the contract, the engineering, procurement and services of the 300MW solar power station is also included. These service requirements will be met by Sepco.

Supports National Policy

Saudi Arabia is undertaking the solar power station as part of Round 5 of the National Renewable Energy Program.

The NREP program intends to create an optimal energy mix for the production of power. The energy mix will include gas and renewable energy. Each of these sources will contribute approximately 50% by 2030, according to the plan.

The solar power station aligns with Saudi Vision 2030. The vision aims to reduce reliance on liquid fuels, while embracing cleaner energy sources.

Collaboration with Leading Partners

Earlier this month, a consortium comprising TotalEnergies and Saudi developer Aljomaih Energy and Water Company signed a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC). This secures long-term stability for the solar plant and implies it will be contributing to the needs of the nation for generations.

Connection to the Grid Planned for 2026

The consortium will develop, construct, and own the plant after creating it. They will connect the solar power plant to the national grid in 2026.

The Rabigh 2 solar power station boosts Saudi Arabia’s journey towards energy transformation. With the new initiative, the kingdom will get closer to its energy targets. The initiative’s goal is to make a substantial contribution to guaranteeing a cleaner, better future.

Iberdrola announced that it has acquired the entire ownership of Avangrid by buying the 18.4% of the company’s shares that it did not already own.

Key Details of the Merger

The Federal Energy Regulatory Commission, as well as Maine and New York state regulators, have approved the merger. Each Avangrid shareholder will receive $35.75 per share as part of the merger and after completing the acquisition of necessary permissions from the regulators the company will be delisted from the New York Stock Exchange.

Also read: EIB and Iberdrola Partner on €100 Million Green Loan for Photovoltaic Plant in Sicily

On December 2, 2024, Avangrid stockholders who still own equity will get a quarterly dividend in line with that amount. Due to the merger, Avangrid will remain a privately held business with its headquarters located in Connecticut.

Growth Oriented Merger

This merger not only shows a good commitment of Iberdrola to green or clean energy but also upholds its role in writing out a sustainable future in America. In the past decade, the company grew in renewable energy and also significantly in grid infrastructure. The private company, Avangrid, is well equipped to lead sustainable energy initiatives into the region.

Boosting US Investments

The merger increase Iberdrola’s ability to invest in the United States efficiently. Avangrid will focus its operations on energy infrastructure projects benefiting local communities. These projects would enhance the power grid, which is helpful for meeting the requirements of utilities and data centres.

Further, the projects will also accelerate the local economy by giving rise to direct and indirect employment opportunities for many individuals.

Avangrid’s Record in Renewables

Avangrid has earned itself a prominent spot in the US a leading player in networks and renewable energy. It curently serves 7 million people across states like New York, Connecticut, Maine and Massachusetts. As of now Avangrid has assets that are valued at $46 billion.

Along with that, the company’s relenewable energy capacity spread acorss 24 states stands at 8,700 MW of energy.