Saudi Arabia’s Power Procurement Company (SPPC) has shortlisted consortiums led by Masdar, EDF, and TotalEnergies for the fifth round of solar projects under the Kingdom’s National Renewable Energy Programme (NREP).
The projects, valued at over SAR 8 billion ($2.12 billion), are set to be developed on a build, own, and operate (BOO) basis.
There are four key solar projects: the 2000 MWac Al Sadawi Independent Power Producer (IPP) in the Eastern Province, the 1000 MWac Al Masa’a IPP in Hail, the 400 MWac Al Henakiyah 2 IPP in Madinah, and the 300 MWac Rabigh 2 IPP in Makkah Province.
For the Al Sadawi IPP, two consortia have been shortlisted: one comprising Masdar, Korea Electric Power Corporation, and GD Power Development Company with a price of 4.84736 Halala/kWh (1.29263 USDc/kWh), and another led by SPIC Huanghe Hydropower Development and EDF Renouvelables at 4.92019 Halala/kWh (1.31205 USDc/kWh).
In the Al Masa’a IPP, a consortium of SPIC Huanghe Hydropower Development and EDF Renouvelables offered a bid of 5.13228 Halala/kWh (1.36861 USDc/kWh), while a second bid from Al Jomaih Energy and Water Company and TotalEnergies Renewables stood at 5.25462 Halala/kWh (1.40123 USDc/kWh).
For the Al Henakiyah 2 IPP, the shortlisted bids include a group led by Masdar, Korea Electric Power Corporation, and Nesma Company at 5.90820 Halala/kWh (1.57552 USDc/kWh), as well as a consortium of SPIC Huanghe Hydropower Development and EDF Renouvelables at 5.68618 Halala/kWh (1.51631 USDc/kWh).
In the Rabigh 2 IPP project, Al Jomaih Energy and Water Company, in partnership with TotalEnergies, submitted a bid of 6.68019 Halala/kWh (1.78138 USDc/kWh), while Masdar, Kepco, and Nesma proposed a price of 7.11891 Halala/kWh (1.89838 USDc/kWh).
The projects form part of Saudi Arabia’s broader efforts to diversify its energy mix and meet its target of generating 50% of its electricity from renewable sources by 2030.
Through the NREP, SPPC has so far awarded over 19 GW of renewable energy capacity. Each selected project company will enter a 25-year power purchase agreement with SPPC.
The fifth round of NREP was launched with a request for qualification (RFQ) in November 2023, drawing interest from 31 applicants.
After a thorough evaluation process, 23 companies were qualified for lead roles, and six bids were received for each project.
The NREP initiative aligns with Saudi Arabia’s Vision 2030, aiming to reduce dependency on fossil fuels and establish the Kingdom as a global leader in renewable energy development.
The largest of the projects, the Al-Sadawi Solar PV Project, will generate 2,000 MW of energy, contributing to Saudi Arabia’s decarbonization efforts.
The Rabigh 2 Solar PV Project will be built on land in the Rabigh Industrial City, overseen by the Saudi Authority for Industrial Cities and Technology Zones (MODON).
The announcement comes at a time when Saudi Arabia is ramping up its renewable energy investments. It follows the launch of the Request for Qualification (RfQ) for the sixth round of the NREP last month.
This round includes 4.5 GW of solar and wind projects and is part of the Kingdom’s ongoing efforts to transition to renewable energy. The projects in this round include the Dawadmi Wind IPP (1.5 GW) and four additional solar projects spread across various regions of the country.
Saudi Arabia’s Vision 2030 agenda places renewable energy at the heart of the Kingdom’s economic and environmental transformation. By shifting towards solar and wind energy, the country aims to reduce its carbon footprint and establish itself as a leader in the global renewable energy market.
The country has already awarded projects exceeding 19 gigawatts (GW) of capacity through various rounds of tenders under the NREP.
The focus on renewable energy is part of Saudi Arabia’s long-term goal to generate 100-130 GW of renewable capacity by 2030.
Earlier this year, the SPPC said that it plans to issue annual tenders for new renewable projects totaling 20 GW per year.
It has signed power purchase agreements (PPAs) for three major solar projects—Haden (2 GW), Muwayh (2 GW), and Al Khushaybi (1.5 GW)—and two wind projects with a combined capacity of 1.1 GW.
The agreements set a world record for the lowest price for wind energy, at $15.65 per megawatt-hour (MWh), positioning Saudi Arabia as a key player in the global renewables market.
In 2022, the Kingdom inaugurated its first utility-scale solar power plant, the Sakaka Solar Plant, with a capacity of 300 MW, developed by ACWA Power.
Industry analysts have praised the Kingdom’s efforts, noting that its growing renewable energy capacity will have a significant impact on the region’s energy landscape.
