Meed | Neom to tender hydropower contract

Neom to tender hydropower contract

29 October 2024

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Neom's utility subsidiary Enowa is expected to issue the request for proposals (RFP) for a contract to develop and operate the first phase of a pumped hydropower storage (PHS) network catering to Saudi Arabia's Neom gigaproject before the end of the year.

The planned first phase of Neom’s PHS project, known as Nestor, will have an installed capacity of 2,200MW and a storage capacity of 23.1 gigawatt-hours, or about 11 hours, according to industry sources.

Enowa received statements of qualifications from international and local developers and investors on 30 June.

However, it has yet to release the prequalification evaluation results.

"As far as we know, the RFP is set to be issued some time in December this year," a source familiar with the project tells MEED.

The Nestor project will be developed using a build-own-operate-transfer model that is expected to cover 40 years, excluding the construction period.

The expected capital expenditure for the project is $2.7bn.

Enowa received expressions of interest in bidding for the project from developers and contractors in January this year.

PHS network

The overall infrastructure will involve developing four PHS stations in Neom. The planned schemes will form the backbone of an energy storage infrastructure at the SR1.5tn ($500bn) development.

The other three planned PHS projects will be located in Al-Qimmah, Nima and Beach Mountain, and will have capacities of about 3,000MW, 1,000MW and 3,000MW, respectively.

UK-based HSBC and US-based White & Case are advising the client on the scheme.

The PHS independent power project will complement Neom’s planned multi-gigawatt renewable energy infrastructure, in line with its vision of being 100% powered by renewable energy by 2030.

A PHS facility typically comprises two water reservoirs at different elevations that can generate power when water passes through a turbine and moves down or is discharged from the upper reservoir to the lower reservoir.

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Jennifer Aguinaldo