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Chalhoub Group, the Middle East’s leading luxury retail group, has signed a solar lease agreement with Yellow Door Energy to power its fulfilment hub in Riyadh with clean, renewable energy, marking another step in the group’s sustainability journey in Saudi Arabia.
The 848 kilowatt-peak (kWp) project will see a fully off-grid rooftop solar power plant installed at the facility, eliminating reliance on the local electricity network. The system will comprise more than 1,380 solar panels and is expected to generate around 1.2 million kilowatt-hours (kWh) of clean electricity in its first year of operation, reducing carbon emissions by an estimated 460 metric tons.
Construction of the solar plant is already underway, with completion targeted for early 2026. Under the terms of the solar lease, Yellow Door Energy will finance, design, build, commission, operate, and maintain the installation, enabling Chalhoub Group to access renewable energy without assuming operational or technical risk while remaining focused on its core business.
Read: Yellow Door Energy marks 10 years with 1 billion kWh of clean energy generated
Mohammed Aldabbagh, KSA managing director at Chalhoub Group, commented: “At Chalhoub Group, sustainability is at the heart of everything we do: it is embedded in our purpose and business model, not an add-on. Our solar lease with Yellow Door Energy is a tangible step in bringing our ESG commitments to life, reflecting our dedication to the planet, our people, and our partners. Through initiatives like this, we aim to reduce our environmental footprint, foster inclusive and empowering workplaces, and work collaboratively with our partners to drive meaningful change. Projects such as this allow us to contribute positively to Saudi Arabia’s sustainability ambitions while continuing to inspire and delight our customers.”
Khaled Chebaro, country director KSA at Yellow Door Energy, said: “We are honored to partner with Chalhoub Group, an iconic luxury retailer that has been adorning the Middle East since 1955. Through the solar lease, significant cost savings and carbon emissions reductions will be achieved, demonstrating that what is good for the planet is also good for business. The Kingdom of Saudi Arabia continues to lead the region in its sustainability stewardship. This solar lease reinforces that leadership and supports the Kingdom’s Net Zero by 2060 target.”
