Riyadh Cement Signs 25-Year Solar Power Deal

Riyadh Cement Company has signed a 25-year solar power purchase agreement with SAMANA Energy, in a move set to supply renewable electricity to its manufacturing plant in Al-Muzahimiyah, Riyadh Province. The agreement was signed on 14 September 2026.

Under the deal, Riyadh Cement will buy electricity from a 30 MW solar-generation system, with an expected average payment of about SAR 6 million excluding VAT. Total payments are estimated at roughly SAR 150 million over the 25-year term, also excluding VAT.

The company said it will purchase electricity at a cost lower than both its current generation cost and the cost supplied by Saudi Energy Company. Riyadh Cement is not expected to incur any capital or operating expenditure for the project, as the system will be developed and operated by the energy partner.

The solar-generation system is expected to begin operations in the fourth quarter of 2027. Expected savings should begin progressively from the first year of operation, though the final financial impact will depend on the energy prices in effect once the project is running. The project remains subject to obtaining the required licences, permits, and regulatory approvals.

Why it matters

The agreement reflects a growing shift among Saudi industrial companies toward renewable energy to cut costs and reduce reliance on conventional power. Lower and more predictable energy expenses can support the competitiveness of local manufacturing, while the project adds to the Kingdom's expanding solar footprint in line with national energy goals.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving