Saudi Arabia's ruler has attended the ground-breaking ceremony for the 300MW Sakaka PV IPP, the first renewable energy project under King Salman Renewable Energy Initiative.

The SR1.2 billion ($320 million) solar plant is expected to start commercial operations next year and upon completion, will supply 45,000 households with power in Al Jouf, while offsetting over 430,000 tonnes of carbon dioxide a year.

The project will also create new employment opportunities in fields including construction and operations, said Mohammad Abunayyan, chairman of ACWA Power, the company behind the project.

Abunayyan said: "Today, we renew our pride and honour as King Salman bin Abdulaziz graciously grants us the starting signal to commence the construction and operation of Sakaka PV IPP.

"The project is marked as the first project under the progressive initiative to benefit from renewable energy in the kingdom and is set at a world record-breaking tariff that will transform the photovoltaic solar energy sector across the globe.”

Video of A look at Saudi Arabia's $200bn ambitions to develop the globe’s biggest solar power project

He added: “We are immensely proud to take part in the first clean energy project in Saudi Arabia that contributes to the sustainable transition of the kingdom.

“We look forward to utilising our expertise gained from renewable projects across the globe to develop and advance the capabilities of the renewable energy sector in the kingdom.”

The event took place following an announcement last week of the successful financial closure of the project.