How Saudi Arabia is integrating solar power into water desalination PPPs to cut carbon emissions
meed.comSaudi Arabia is embedding renewable energy requirements into its water public-private partnership (PPP) contracts. The country produces over 10.7 million cubic meters of desalinated water daily, making it the world's largest producer. Energy consumption is now a key competitive factor, and solar photovoltaic systems are being integrated directly into project designs to reduce grid dependence and operating costs. Projects like Jubail 3A IWP set benchmarks with energy consumption below 2.9 kWh per cubic meter and a water tariff of $0.41 per cubic meter. SHARAKAT, the main water off-taker, has introduced contractual energy-cap clauses and solar requirements. The portfolio consumed 2.95 billion kWh in 2024, generating 1.62 million metric tonnes of CO2. Solar integration and biogas capture are being used to lower that footprint. SHARAKAT is also exploring carbon credit partnerships through Saudi Arabia's Voluntary Carbon Market and plans to use green bond financing. The shift from optional solar to mandatory integration changes bid economics and makes environmental performance auditable for lenders.
