Saudi Arabia has achieved a major milestone in its renewable energy expansion with the commercial operation of the 1,100 MW Al Henakiyah 1 Solar Photovoltaic Plant in the Madinah Region. Located south of Al Henakiyah Governorate, the utility-scale project has entered commercial operation under the supervision and implementation of the Ministry of Energy.
The plant is expected to generate enough clean electricity annually to meet the power requirements of around 190,000 households. With a capacity of 1.1 GW, the project adds significant renewable generation capacity to Saudi Arabia’s electricity system and supports the Kingdom’s broader plans to increase the share of clean energy in its power mix.
One of the key features of the Al Henakiyah 1 project is its highly competitive electricity tariff. Power generated by the plant will be purchased at a tariff of 1.6842 US cents per kilowatt-hour, highlighting the declining cost of large-scale solar power and Saudi Arabia’s ability to develop renewable projects at globally competitive prices.
The project has been developed under the fourth phase of Saudi Arabia’s National Renewable Energy Program and supports the renewable energy objectives outlined under Saudi Vision 2030. The Kingdom aims to transform its electricity mix so that renewable energy and energy storage technologies together account for around 50 percent of total electricity generation by the end of the decade.
The Al Henakiyah project also contributes to the Liquid Fuel Displacement Program, which seeks to reduce and eventually phase out the use of liquid fuels in power generation. Increasing solar generation can help reduce the domestic consumption of oil-based fuels for electricity production while lowering emissions and preserving valuable energy resources.
The commercial launch of the plant strengthens Saudi Arabia’s efforts to diversify its energy sector and reduce its dependence on conventional petroleum-based power generation. It also supports the Kingdom’s wider clean energy and environmental objectives.
With large-scale solar projects such as Al Henakiyah 1, Saudi Arabia is expanding its renewable power infrastructure while seeking to improve energy security, reduce emissions and establish a more diversified and sustainable electricity system.
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