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Saudi Arabia increases 2030 renewables target

16 November 2023

Saudi Arabia's Energy Ministry has nearly tripled the kingdom's 2030 renewable energy capacity target from the current 58.7GW to 130GW.

The new 2030 target is "subject to demand growth", last month's Mena Climate Week, held in Riyadh, was told.

The ministry said it expects a total renewable capacity of 22.8GW at different development stages by the end of 2023. 

Related read: Megaprojects will weigh on Saudi utility capacity

These projects constitute total investments of about $16bn and are expected to reduce carbon dioxide emissions by approximately 38 million tonnes a year when all projects are operational.

For 2024, the ministry said it expects "massive-scale planned tendering capacity of 20GW".

The kingdom is also expanding the capacity of its thermal fleet, with the procurement of an additional 7.2GW of combined-cycle gas turbine plants "with readiness for carbon capture".

The ministry said 1.5GW of liquid fuel-based capacity has also been retired, in line with decarbonising its electricity production sector. 

Under the existing strategy, the kingdom's principal buyer, Saudi Power Procurement Company (SPPC), is procuring 30 per cent of the kingdom's 2030 renewable energy target capacity through a public tendering process, while the Public Investment Fund (PIF) is procuring the rest through direct negotiations.  

According to data collated by MEED, over 1,100MW of capacity from the first and second public tendering rounds of the National Renewable Energy Programme (NREP) are operational.

Approximately 2,370MW of publicly tendered and over 2,300MW of directly negotiated solar power capacity is under construction.

Solar capacity of 1,500MW that is being overseen by SPPC under the fourth round of the NREP has recently been awarded, while 1,800MW of wind power capacity is expected to be awarded before the end of the year.

Financial close is pending for over 4.5GW of solar capacity, which the PIF awarded to a team of Saudi firms comprising Water & Electricity Holding Company (Badeel) and Acwa Power.

SPPC has also started the prequalification process for the NREP round five contracts. Round five comprises four solar photovoltaic (PV) schemes with a total combined capacity of 3.7GW. 

MEED understands that round six of the NREP will include wind and battery energy storage systems. 

The PIF is also expected to start the negotiations process with Acwa Power for its next set of PV projects by the end of the year.

Photo: Sakaka solar PV plant

https://image.digitalinsightresearch.in/uploads/NewsArticle/11303825/main2151.jpg
Jennifer Aguinaldo

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