Local firm to co-develop Saudi wind IPPs
22 May 2024
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Local firm Ajlan & Bros will co-develop, along with consortium leader Japan's Marubeni Corporation, the Al Ghat and Waad Al Shamal wind independent power projects (IPPs) in Saudi Arabia.
The projects, along with a third one in Yanbu, are procured under the fourth round of Saudi Arabia's National Renewable Energy Programme (NREP).
Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), signed the power-purchase agreements (PPA) with the consortium for the 600MW Al Ghat and 500MW Waad Al Shamal wind farms on 21 May.
Saudi Energy Minister, Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, witnessed the signing ceremony held during the Saudi-Japan Vision 2030 Business Forum in Tokyo.
The Al Ghat wind IPP project achieved a new world-record-low in terms of levelised electricity cost from wind power at $cents 1.56558 a kilowatt-hour (kWh), or about 5.87094 halalas/kWh.
The Waad Al Shamal project has also achieved a second world-record-low for wind power at $cents 1.70187/kWh or 6.38201 halalas/kWh.
MEED understands that the developer consortium has selected a team comprising Chinese engineering, procurement and construction (EPC) firms Power China and Sepco 3 for the two wind IPP projects.
The winning bidder for the third project – the 700MW Yanbu wind IPP – has yet to be confirmed, a source told MEED.
In addition to the Marubeni consortium, the following developer teams submitted proposals for the contracts to develop the three wind IPP schemes:
- Acwa Power (Saudi Arabia) / TotalEnergies Renewables (France)
- EDF Renewables (France) / Masdar (UAE) / Nesma Company (local)
- Engie (France) / Albawani Company (local) / Haji Abdullah Alireza & Company (local)
- Sumitomo (Japan) / Aljomaih Energy & Water Company (local) / Shikoku Electricity Power Company (Japan)
The financial advisory division of Tokyo-based Sumitomo Mitsui Banking Corporation is advising SPPC on procuring the three wind IPPs.
Saudi Arabia has procured only one wind IPP under the NREP so far.
Tendered under round two, the 400MW Dumat Al Jandal wind IPP was connected to the Saudi electricity grid last year.
A team of France’s EDF Renewables and UAE-based Abu Dhabi Future Energy Company (Masdar), which won the $500m contract in 2019, is developing and operating the scheme.
Saudi Arabia aims to install 58,700MW of renewable energy capacity by 2030 through the NREP. MEED understands the final target has been increased to 130GW, subject to demand growth.
The Energy Ministry, through SPPC, is tasked with procuring 30% of this capacity through public tendering. Saudi sovereign wealth vehicle the Public Investment Fund will procure the rest under the kingdom’s Price Discovery Scheme.
Both initiatives aim to drive renewable sources to account for 50% of electricity production in Saudi Arabia by 2030, displacing liquid fuels, with natural gas accounting for the remaining 50%.
MEED's April 2024 special report on Saudi Arabia includes:
> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects
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Siemens Energy wins $1.6bn Saudi deal
13 March 2025
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global
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Commentary
Colin Foreman
EditorRead the March MEED Business Review
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483117/main.gif