Saudi Power Procurement Co. signs $458m wind energy deal for Yanbu project
Renewables capacity in Kingdom planned to reach between 100 GW and 130 GW by 2030
Project will be situated in the Madinah region
Updated 02 July 2025
Nadin Hassan
RIYADH: Saudi Power Procurement Co. has signed a power purchase agreement for the 700-megawatt Yanbu Wind Power Project, backed by an investment exceeding SR1.7 billion ($458 million).
The deal was finalized with a consortium made up of Japan’s Marubeni Corp. and the Kingdom’s Abdulaziz Al-Ajlan Sons for Commercial and Real Estate Investment Co. the Saudi Press Agency reported.
This aligns with the Kingdom’s National Renewable Energy Program, a strategic framework overseen by the government and designed to diversify the Kingdom’s power sources.
The SPA reported that the project will help in “maximizing economic returns by contributing to the displacement of liquid fuels used in electricity production, and achieving the optimal energy mix for electricity production” so the share of renewable energy sources will reach approximately 50 percent of the national mix by the end of the decade.
Renewables capacity in Saudi Arabia is planned to reach between 100 gigawatts and 130 GW by 2030, significantly increasing the nationwide supply of solar and wind energy.
As part of the projects under the National Renewable Energy Program, supervised by the Ministry of Energy, #PrincipalBuyer signs a new Power Purchase Agreement for the Yanbu Wind Power Project with a capacity of 700 MW.#EnergyForTomorrowpic.twitter.com/J9QKQl9N9C
— الشركة السعودية لشراء الطاقة "المشتري الرئيس" (@SPPC_KSA) July 2, 2025
The Yanbu Wind Power Project will be situated in the Madinah region and is expected to generate electricity at a cost of SR0.06 per kilowatt‑hour, according to SPA.
This competitive tariff highlights the increasing cost-effectiveness of renewable energy technologies in Saudi Arabia.
SPPC is responsible for managing the Kingdom’s electricity sourcing processes. This includes conducting feasibility studies, organizing competitive tenders for power generation projects, and entering into agreements to purchase electricity from independent power producers.
In November, the company signed agreements for five independent energy projects in the Kingdom, which have a total capacity of 9.2 GW.
The new power generation projects include two thermal energy plants, Rumah and Al Nairyah, and the Al Sadawi Solar Photovoltaic Project.
The Rumah and Al Nairyah facilities will utilize the flexible combined cycle gas turbine technology for their operations, and are designed to incorporate carbon capture units, contributing a combined 7.2 GW to the national grid.
Both facilities are scheduled to begin commercial operations by the second quarter of 2028.
Artificial intelligence is transitioning into a ‘digital employee’
AI can be an effective tool, business leaders tell Arab News
Not about jobs, but ‘convergence of human capital and AI’
Updated 57 min 29 sec ago
Hebshi Alshammari
RIYADH: Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.
Amidst the current global transformations, an active regional digital environment is emerging.
This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.
Arab News spoke to various business leaders about the emerging shape of the sector.
Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.
Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.
He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.
While machines excel at processing big data and performing repetitive, precise tasks, humans would bring creativity, emotional intelligence, and complex decision-making. (Supplied)
Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.
He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”
AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.
Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”
He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.
Opinion
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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.
The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.
Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”
He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.
Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.
Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.
He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.
In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.
Ali Aljumhour, CEO of VALUE Consultancy. (Supplied)
Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.
Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.
He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.
On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”
There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.
He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.
In the employment sector, Aljumhour expects fundamental changes in standards.
There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.
Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.