Saudi Arabia evaluates wind farm bids
8 January 2024
Saudi Arabia is still evaluating bids for the contracts to develop and operate three wind independent power producer (IPP) projects in the kingdom, according to sources close to the project.
The projects, procured under the fourth round of the kingdom's National Renewable Energy Programme (NREP), have a total combined capacity of 1,800MW.
They include:
- Yanbu wind IPP: 700MW
- Al-Ghat wind IPP: 600MW
- Waad al-Shamal wind IPP: 500MW
"They are still evaluating the bids," said one source, noting that the bid evaluation process for wind IPPs is slightly more complex than for solar photovoltaic IPP projects. "They have to look carefully at the wind turbine suppliers, for example, as well as the overall bankability of the proposals."
State offtaker Saudi Power Procurement Company (SPPC) is undertaking bid clarifications with the consortiums that have submitted proposals for the contracts, MEED reported in November.
At the time, it was expected that SPPC would open the commercial bids for the projects "within the next two months".
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 (Haaco, local)
- Marubeni Corporation (Japan) / local partner
- Sumitomo (Japan) / Aljomaih Energy & Water Company (Jenwa, local) / Shikoku Electricity Power Company (Japan)
SPPC qualified 18 companies to bid for the contracts, as MEED reported in December 2022. SPPC received bids for the contracts in October last year.
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 per cent of this capacity through public tendering, while 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 per cent of electricity production in Saudi Arabia by 2030, displacing liquid fuels, with natural gas accounting for the remaining 50 per cent.
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