Riyadh – A consortium led by Japan’s Marubeni Corporation and Saudi firm Ajlan & Bros has secured a major contract to develop the 700MW Yanbu Wind Energy Project in the Madinah Region of Saudi Arabia. The $458 million initiative will supply electricity at a levelised cost of 1.72468 US cents per kWh, according to the Saudi Principal Buyer, the kingdom’s key energy offtaker.
The agreement was formalized through a Power Purchase Agreement (PPA), positioning the project as one of the most competitively priced renewable energy developments in the country to date.
Strategic Alignment with Vision 2030
The Yanbu wind farm is being developed under the National Renewable Energy Program (NREP), a flagship initiative supervised by the Saudi Ministry of Energy. NREP is a cornerstone of Vision 2030, which seeks to diversify the kingdom’s energy sources and reduce reliance on liquid fuels in power generation.
The program aims to make renewables contribute up to 50% of Saudi Arabia’s electricity mix—an ambitious target designed to transition toward sustainable, low-emission energy infrastructure.
“This project underscores Saudi Arabia’s strong commitment to reshaping its energy landscape in alignment with global climate goals,” said a spokesperson for the Saudi Principal Buyer.
Investment and Regional Development
The project carries an estimated investment of SAR 1.7 billion ($458 million) and is expected to boost local employment, support technology transfer, and stimulate economic growth in the Madinah region. As part of NREP’s broader goals, the Yanbu project is also expected to accelerate the development of wind energy expertise within the Kingdom.
By combining international experience from Marubeni and local market knowledge from Ajlan & Bros, the consortium represents a powerful strategic partnership for Saudi Arabia’s clean energy future.
About the Stakeholders
- Marubeni Corporation is a global Japanese trading and investment conglomerate with extensive experience in power infrastructure.
- Ajlan & Bros is a prominent Saudi investment firm with diversified interests, including real estate and commercial ventures.
- Saudi Principal Buyer, the project’s anchor offtaker, is responsible for all energy offtake agreements within the Kingdom and plays a vital role in structuring, pre-developing, and tendering new generation assets.
The 700MW Yanbu Wind Energy Project is part of a rapid expansion in Saudi Arabia’s renewable energy sector, following earlier solar and wind developments across Al Jouf, Dumat Al Jandal, and other key regions.
Source: The Arabian Wall Street
