NADEC completes first phase of Haradh solar plant, 90% work completed

Logo of National Agricultural Development Co.

National Agricultural Development Co. (NADEC) completed the construction works on the 30 megawatts (MW) solar energy project in Haradh by operating 10 MW.

In a bourse filing today, Aug. 31, the company said that 90% of the project work had been completed.

According to the firm’s preliminary estimates, a decrease in fuel consumption is likely after operating 10 MW in the range of 2.9 million liters, which will reduce energy costs by SAR 740,000. These savings will begin to reflect gradually in the Q4 2021 financial results.

The total expected decrease in fuel consumption after operating the entire project (30 MW) will be around 16 million liters, or SAR 4.1 million, which will lower NADEC’s energy costs by 4%.

The company will assess the additional savings from the actual usage of the solar panels in Q4 2021 during the operating process of the project.

The entire project is expected to be completed by Oct. 31, and the estimated commercial operation is likely to start simultaneously.

In July 2019, NADEC signed a solar power purchase agreement (PPA) with France-based World Energy Actor (ENGIE) for 25 years to set up a 30 MW solar power project in NADEC City, Haradh, through integration with the company’s current energy resources.

The expected timeframe to begin commercial operation was Oct. 31, 2020, Argaam reported.