Expectation grows for Yanbu wind IPP award
23 May 2024Commentary
Jennifer Aguinaldo
Energy & technology editor
Market expectations and speculation have intensified regarding the third wind independent power project (IPP) – the 700MW Yanbu scheme – that the Saudi principal buyer tendered as part of round four of Saudi Arabia's National Renewable Energy Programme (NREP).
This follows the signing of power-purchase agreements (PPAs) on 21 May by the Energy Ministry's Saudi Power Procurement Company and a consortium of Japan's Marubeni Corporation and the local Ajlan & Bros for the contracts to develop two wind IPP schemes that belong to the NREP round four.
The Marubeni-led consortium has agreed to develop and operate the 600MW Al Ghat wind IPP project with a new world-record-low levelised electricity cost (LCOE) from wind power of $cents 1.56558 a kilowatt-hour (kWh), or about 5.87094 halalas/kWh.
The 500MW Waad Al Shamal project has also achieved a second world-record-low tariff for wind power of $cents 1.70187/kWh or 6.38201 halalas/kWh, the ministry has announced.
The tariff achieved for Al Ghat is almost 22% lower compared to the LCOE agreed for Saudi Arabia's first wind IPP, the 400 Dumat Al Jandal scheme, which was awarded in 2019.
MEED understands the final approval process is under way for the Yanbu wind IPP contract award.
Speculation over the winning bidder and the tariff proposed by that team varies.
Some assume that the Yanbu wind IPP's higher capacity and potential lower capacity factor and the world-record-low tariffs achieved for Al Ghat and Waad Al Shamal imply that the LCOE for the Yanbu wind contract will be even lower than either.
The same text that says "world-record-low" tariffs, attributed to Saudi Energy Minister Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, may also imply the opposite, though less plausible, outcome: that the winning bidder for the Yanbu wind scheme may have proposed a higher tariff than those achieved for Al Ghat and Waad Al Shamal.
Industry sources previously told MEED that the favourites to win the three contracts, in addition to Marubeni, were the teams separately led by Riyadh-based Acwa Power and France's Engie.
However, the Marubeni-led team's successful bid for the two contracts means one of the region's two largest utility developers will go home empty-handed, assuming the industry sources are correct.
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SPPC moves Dawadmi wind bid deadline Jennifer Aguinaldo
22 May 2025
Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has extended the bid deadline for the contract to develop a wind independent power project (IPP) under the sixth round of Saudi Arabia’s National Renewable Energy Programme (NREP).
MEED reported in March that the prequalified developers had formed consortiums and were preparing their proposals for the contract, the fifth wind IPP to be tendered under the NREP.
SPPC initially expected to receive bids by 15 May, but the deadline has since been extended to 23 June, according to industry sources.
The new deadline is likely to be extended again, however, one of the sources told MEED.
The consortiums that have been formed and will likely bid for the contract include teams led separately by UAE-based Abu Dhabi Future Energy Company (Masdar) and French firms Engie and EDF Renewables, sources said.
MEED understands that Beijing-based PowerChina and one of its subsidiaries are part of separate bidding consortiums.
Located in Riyadh, the Dawadmi wind IPP will have a capacity of 1,500MW. It is the only wind scheme and the fifth package under round six of the the NREP.
Four solar photovoltaic (PV) schemes, with a total combined capacity of 3,000MW, comprise the rest of the round six projects.
In addition to the firms cited above, SPPC prequalified the following companies to bid as managing and technical members of consortiums bidding for the contract:
- Marubeni Corporation (Japan)
- Sembcorp Utilities (Singapore)
- Sumitomo Corporation (Japan)
- Total Energies Renewables (France)
- Goldwind Science & Technology (China)
- Alfanar Company
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The following eight companies were prequalified to bid as managing members:
- Al-Jomaih Energy & Water (local)
- Jinko Power (Hong Kong)
- Saudi Electricity Company (local)
- China Power Engineering Consulting Group International Engineering Company (China)
- Posco International Corporation (South Korea)
- Korea Electric Power Corporation (Kepco, South Korea)
- Nareva Holding (Morocco)
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Another firm, the local Nesma Renewable Company, has been prequalified as a technical member.
In addition to the Dawadmi wind IPP, the following schemes comprise round six of the NREP:
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The previous wind farms that SPPC has tendered include the 400MW Dumat Al-Jandal wind IPP, which is operational.
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GE Vernova confirms $14.2bn Saudi initiatives Jennifer Aguinaldo
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US-based energy equipment manufacturer GE Vernova announced initiatives worth up to $14.2bn in Saudi Arabia, which coincided with US President Donald Trump’s state visit to the kingdom last week.
The initiatives aim to “accelerate Saudi Arabia’s energy transition with US technology and expertise”, the firm said.
The announcements include up to $2bn in backlog or on a reservation agreement as of the first quarter of 2025, with future contracts and memorandums of understanding (MoUs) for agreements spanning across the next four years.
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