Riyadh Cement Signs 25-Year Solar Power Deal

Riyadh Cement has concluded a 25-year solar power purchase agreement with Samana Energy to supply electricity to its operations, securing a long-term energy source at a cost lower than the company currently pays.

Under the deal, the contracted electricity price is set below Riyadh Cement's current cost of generation and below the applicable electricity cost from the Saudi Energy Company. The company estimates an average annual payment of around SAR 6 million, excluding VAT, across the full 25-year term.

The solar system is expected to begin commercial operations in the fourth quarter of 2027. Riyadh Cement said it will not finance the project and will not incur any capital or operating expenditures for the solar generation system, subject to obtaining the required licenses and approvals.

cost reductions are expected to begin gradually from the first year of operation once the plant starts running. The move reflects a growing shift among Saudi industrial firms toward renewable energy to lower operating costs and support long-term sustainability goals.

Why it matters

Long-term power agreements such as this one give industrial companies greater cost predictability while reducing reliance on conventional electricity. For the wider community, expanding solar capacity across the Kingdom's industrial sector aligns with national efforts to diversify energy sources and support cleaner production.

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