(Yicai) Aug. 14 -- A consortium set up by three units of state-owned energy conglomerate China Energy Engineering Corporation, also known as Energy China, has secured a USD972 million contract to construct a 2-gigawatt photovoltaic power station in Saudi Arabia.

The consortium has signed an engineering, procurement, and construction contract for Haden Solar PV with project owner Buraiq Renewable Energy, the Beijing-based firm said late yesterday.

Located about 95 kilometers northeast of Taif, in western Makkah province, the project is scheduled to start commercial operation in early 2027, Energy China noted, adding that it will likely generate around 156.2 billion kilowatt-hours of electricity in 25 years, reducing carbon emission by nearly 147 million tons.

The consortium will provide a complete package of services for the construction of the solar power station, from engineering design to electricity grid connection. It will take about 31 months to build, with a warranty period of 24 months.

Buraiq Renewable Energy is a joint venture set up by ACWA Power, Saudi Arabia's Public Investment Fund, and Saudi Aramco Power to invest in and build Haden Solar PV, according to Energy China.

Energy China had secured two other major contracts in Saudi Arabia to build the 300-megawatt Rabigh Solar PV plant in 2021 and the 2.6 GW Al Shuaibah solar plant in 2022. Last week, it also penned an EPC contract for a 1 GW PV plant in Iraq's Artawi oilfield. 

According to Saudi Arabia's Vision 2030, the Middle Eastern country will have a renewable energy output of 58.7 GW by 2030, generating 40 GW by solar power, with new energy accounting for half of its power consumption.

The Saudi government will hold annual tenders from this year for the construction of 20 GW of renewable energy projects to increase the corresponding installed capacity to 130 GW by 2030, it said at the end of last year.

Shares of Energy China [SHA: 601868] closed 0.5 percent higher at CNY2.24 (31 US cents) apiece in Shanghai today. Its Hong Kong-traded stock [HKG: 3996] jumped 1.2 percent to 82 Hong Kong cents (11 US cents).

Editor: Martin Kadiev