One of the world’s largest producers of oil, Saudi Arabia, claims to have set a new world record for the cheapest power generated by wind turbines, according to Recharge News.

A Japanese wind development consortium led by Marubeni has signed a power purchase agreement (PPA) with the Saudi Power Procurement Company for the output of the 600-megawatt Al-Ghat wind farm at a price of 1.56 cents per kilowatt-hour measured by levelized cost of energy, LCOE. This is a metric that the industry pays close attention to, expressing the total cost of a project in relation to energy production.

The same wind developer has also signed a deal to sell power from another project, the 500-megawatt Waad Al-Shamal, at 1.7 cents per kilowatt-hour.

However, according to Recharge News, it is not easy to determine which projects actually have the lowest prices as several factors, including construction subsidies, vary. However, Al-Ghat power costs less than USD 16 per megawatt-hour, compared to USD 20, which was previously considered ”ultra low”.

English edit: Catherine Brett