Meed | Tubarjal solar IPP set for financial close

Tubarjal solar IPP set for financial close

9 February 2024

A developer team led by China’s Jinko Power expects to reach financial close for the contract to develop and maintain the 400MW Tubarjal solar independent power project (IPP) in Saudi Arabia in the second quarter of this year.

According to a source close to the project, it is currently in the process of selecting an engineering, procurement and construction (EPC) contractor for the project.

The developer team, which also includes Sun Glare and Sunlight Energy, signed a power-purchase agreement with the state offtaker Saudi Power Procurement Company (SPPC) for the Tubarjal solar IPP project in November.

The team offered $c1.71/kWh for the contract to develop and operate the project.

Another team, led by France's EDF Renouvelables, submitted a levelised electricity cost of $c1.94/kWh for the contract.

The contract to develop the 400MW Tubarjal solar IPP was tendered as part of the fourth procurement round of Saudi Arabia's National Renewable Energy Programme (NREP).

Another scheme, the 1,100MW Hinakiyah solar IPP, which a team led by France's EDF won, is part of the fourth procurement round.

The contracts to develop three wind IPPs are also part of the NREP fourth round. SPPC is understood to be undertaking clarifications with bidders before awarding these contracts.

Saudi Arabia aims to install 58.7GW of renewable energy capacity by 2030. It is understood this capacity target has been expanded to 130GW by 2030 "subject to market demand".

The Energy Ministry is tasked with procuring 30% of this capacity through public tendering. The Saudi sovereign wealth vehicle, the Public Investment Fund, will procure the rest under the kingdom’s Price Discovery Scheme.

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Jennifer Aguinaldo