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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
  • SPIC Huanghe Hydropower Development

  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)
  • Jera (Japan)

  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:

  • 1,400MW Najran solar PV IPP (Najran)
  • 600MW Samtah solar PV IPP (Jizan)
  • 600MW Al-Darb solar PV IPP (Jizan)
  • 400MW Al-Sufun solar PV IPP (Hail)

  These schemes take the total capacity of solar and wind projects publicly tendered by SPPC to almost 15,000MW.

  SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

  US/India-based Synergy Consulting is providing financial advisory services to SPPC for the NREP sixth-round tender. Germany’s Fichtner Consulting and US-headquartered CMS are providing technical and legal consultancy services, respectively.

  The previous wind farms that SPPC has tendered include the 400MW Dumat Al-Jandal wind IPP, which is operational.

  Last year, SPPC signed the power-purchase agreements with Japan’s Marubeni Corporation for the contracts to develop and operate the 600MW Al-Ghat and 500MW Waad Al-Shamal wind IPPs. The projects reached financial close in November.

  The third wind IPP, a 750MW scheme in Yanbu, is undergoing review.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13931337/main.jpg

  Jennifer Aguinaldo
• 
  Local firm bids low for Kuwait grid contract Jennifer Aguinaldo

  22 May 2025

  Local contracting firm Power Grid Company has submitted a low bid of KD48.67m ($158.6m) for a contract to supply and install a 400-kilovolt (kV) overhead transmission line (OHTL) in Kuwait.

  The project will link a substation in Shagaya to a substation in Subiya.

  The two other bidders for the contract are the Kuwaiti branch of India-headquartered Larsen & Toubro, which offered KD65.9m, and Al-Khobar-based National Contracting Company, which offered KD57.7m.

  Kuwait’s Ministry of Electricity & Renewable Energy (MEWRE) tendered the contract in October last year.

  The planned OHTL network will link the solar energy transformer station at Shagaya to the Subiya power station, also known as SWPS-2.

  Kuwait plans to expand its renewable energy capacity through a multi-phased solar programme in Shagaya.

  MEWRE, through the Kuwait Authority for Partnership Projects (Kapp), prequalified six consortiums and companies to bid for the contract to develop the Al-Dibdibah power and Al-Shagaya renewable energy phase three, zone one project in August last year.

  The tender for the 1,100MW solar independent power project has yet to be issued.

  MEWRE, through Kapp, recently invited interested firms to prequalify for a contract to develop zone two of the renewable energy complex's third phase.

  The zone two solar photovoltaic project will have a net capacity of 500MW. Utility developers are expected to submit their statements of qualifications by 24 July.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13931091/main0058.jpg

  Jennifer Aguinaldo
• 
  GE Vernova confirms $14.2bn Saudi initiatives Jennifer Aguinaldo

  22 May 2025

  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.

  Among the collaborations and initiatives is a deal between Saudi Electricity Company (SEC) and GE Vernova for the supply of US-made gas turbines, synchronous condensers and balance of plant equipment.

  The equipment deal will support grid stability by providing voltage regulation, reactive power and system strength, supplying inertia to maintain reliable operations as more variable renewable energy is integrated into the system. The deal with SEC also includes capital parts, maintenance and repair services.

  Saudi Arabia's principal buyer, Saudi Power Procurement Company, and GE Vernova are understood to have entered into several MoUs for the supply of advanced power generation equipment and services for future projects; the commercialisation of carbon capture technologies; and training and investments in power sector research and development activities, manufacturing and repairs.

  Saudi utility developer Acwa Power and GE Vernova also signed framework agreements to collaborate on identifying and exploring potential opportunities to supply high-efficiency gas turbines and electrification equipment for future projects in Saudi Arabia. 

  State-backed Saudi Aramco and GE Vernova also announced collaborations to provide maintenance services, repairs and spare parts to support the operations of several power plants in the kingdom.

  Scott Strazik, chief executive of GE Vernova, said that deploying “world-class technology” will help deepen the relationship between the US and Saudi Arabia, advance energy security and strengthen both nations' economic prosperity and competitiveness.

  GE Vernova, or GE, is understood to have been operating in Saudi Arabia for 90 years, with a power generation installed capacity of about 50GW in the kingdom running on its gas turbines.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13931061/main2152.jpg

  Jennifer Aguinaldo
• 
  Adnoc takes a leap forward in becoming a chemicals giant Indrajit Sen

  21 May 2025

  Commentary
  Indrajit Sen
  Oil & gas editor

  Abu Dhabi National Oil Company (Adnoc) has made a significant stride forward in its quest to build a burgeoning chemicals business following the European Union’s (EU) approval for the full acquisition of German chemicals producer Covestro.

  Adnoc International, the overseas business arm of Adnoc Group, signed an investment agreement with Covestro on 1 October, in which it made a takeover offer of €14.7bn ($16.3bn).

  On 13 May, the European Commission, the executive wing of the EU, gave unconditional antitrust approval for the acquisition, saying that the transaction does not raise competition concerns. It added that the companies mainly operate at different levels of the chemical and petrochemical supply chain and would not be able to restrict rivals’ access to inputs or customers.

  Having secured the green light for the Covestro takeover, Adnoc will now look to complete the transaction swiftly. In parallel, the Abu Dhabi energy giant is also likely to move quickly to conclude its deal with Austria’s OMV for a proposed combination of their shareholdings in Abu Dhabi’s Borouge and Austria-based chemicals producer Borealis.

  Adnoc and OMV agreed in March to the terms of a binding framework agreement for the merger of Borouge and Borealis. That, together with the contribution of the upcoming Borouge 4 petrochemicals project in Abu Dhabi, will create a major polyolefins producer valued at over $60bn that will be the world’s fourth-largest by nameplate production capacity.

  Separately, Adnoc also entered into a share purchase agreement in March with Canada-based Nova Chemicals Holdings, an indirectly wholly-owned company of Abu Dhabi’s sovereign wealth institution Mubadala Investment Company, for 100% of Nova Chemicals Corporation (Nova).

  With the takeover of Covestro likely to conclude in the next few months and the Borouge-Borealis merger, along with the acquisition of Nova, expected to be completed in the first quarter of 2026, Adnoc is set to morph into a behemoth in the global chemicals industry in less than a year.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13923953/main3831.jpg

  Indrajit Sen
• 
  PIF and Acwa Power to develop 3GW wind projects Jennifer Aguinaldo

  21 May 2025

  

   

  Register for MEED’s 14-day trial access 

  Saudi Arabia's sovereign wealth vehicle the Public Investment Fund (PIF) and Saudi utility developer Acwa Power are preparing to sign the agreements for contracts to develop 3GW of wind farm projects in Saudi Arabia as part of the 2025 round of the kingdom's National Renewable Energy Programme (NREP).

  According to industry sources, this round comprises wind farm projects in two locations. The first wind farm will have a capacity of 2,000MW while the second will have a capacity of 1,000MW.

  These projects are being procured through direct negotiations between the PIF and Acwa Power, under the Price Discovery Scheme.

  Under this programme, the selected national champion, Acwa Power, is expected to match the tariffs resulting from the latest round of the publicly tendered schemes, the procurement process for which is managed by the principal buyer, Saudi Power Procurement Company (SPPC).

  These projects will correspond to the cluster of round-six NREP projects that are being publicly tendered by SPPC. 

  SPPC's round-six schemes comprise four solar photovoltaic (PV) independent power projects (IPPs) and one wind IPP.

  The bids for these schemes are expected in June, which implies that the PIF and Acwa Power are likely to announce the signing of the two wind farm agreements in Q3 or Q4, once the project's financing package has been agreed with banks.

  This round will precede the cluster of solar projects, with an estimated capacity of 13GW, which will likely be procured in 2026, roughly corresponding to round seven of the publicly tendered NREP projects being procured by SPPC.

  Previous PIF round

  Acwa Power and its partners reached financial close for three large-scale solar PV power plants with a total combined capacity of 5,500MW in September last year, three months after the contracts were signed.

  The solar PV projects and their capacities are:

  • Haden solar PV: 2,000MW
  • Muwayh: 2,000MW
  • Al-Khushaybi: 1,500MW

  The respective project companies that have been formed for the three schemes are Buraiq Renewable Energy Company, Moya Renewable Energy Company and Nabah Renewable Energy Company.

  Acwa Power’s shareholding in each of the three projects is 35.1%. The PIF-backed Water & Electricity Holding Company (Badeel) owns 34.9% and Saudi Aramco Power Company (Sapco), a subsidiary of state majority-owned oil giant Saudi Aramco, owns the remaining shares.

  The three solar PV facilities have a combined value of SR12.3bn ($3.3bn) and are expected to become operational in the first half of 2027.

  The project companies signed financing documents amounting to SR9.7bn ($2.6bn). The financing duration is 27.3 years.

  PIF solar PV projects

  The three, 5.5GW NREP round-four projects have taken the total capacity of solar PV projects being developed by Acwa Power and its partners under the PIF Price Discovery Scheme to about 19.1GW, involving an investment of over $12.3bn.

  The other projects include the 1.5GW Sudair solar PV, which is operational; and the 2.06GW Shuaibah 2, Al-Rass 2, Al-Kahfah and Saad 2, which are under construction.

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  Jennifer Aguinaldo