Saudi Electricity Co (SEC) and Showa Shell Sekiyu KK are jointly working on a 500 kW solar power plant in Saudi Arabia.
The pilot plant, located on Farasan island, southwest Saudi Arabia, is expected to reach full capacity at the end of August, Amer Al-Swaha, head of Independent Power Producer (IPP) projects at SEC, was quoted as saying by Bloomberg..
"The power load in the island is more than 25 MW. This (project) is modest but it is only a start and we will evaluate it to see whether to expand," Al-Swaha said.
The Farasan project should reduce diesel burning for power generation on the island.
"These projects need (government support), with the support we can expand," Swaha added. "With the land we have we can expand the plant to 7 MW."
Under the agreement, Showa Shell will own the project for up to 15 years, after which the assets will be transferred to SEC. Royal Dutch Shell owns one-third of Showa Shell, while Saudi Aramco holds about 15 per cent