Saudi Arabia released a request for qualification for competition for four new solar projects within the fifth phase of the National Renewable Energy Program (NREP).
The Saudi government is exerting efforts to replace fuel with gas and renewable energy sources in electricity production.
The Saudi Power Procurement Company (Principal Buyer) recently signed two power purchase agreements with a total capacity of 1,500 megawatts.
The combined capacity of Round 5 projects is approximately 3700 MW distributed as follows: 2000 MWac al-Sadawi IPP in the Eastern province, 1000 MWac al-Masa’a IPP in the Hail province, 400 MWac al-Henakiyah 2 IPP in Madinah province, and 300 MWac Rabigh 2 IPP in Makkah.
Energy mix
The projects are part of the National Renewable Energy Program, aiming to achieve the optimal energy mix, displacing liquid fuels in the Kingdom’s power sector and supplying 50 percent of its electricity from renewable energy by 2030.
The National Renewable Energy Program is a strategic initiative under the umbrella of the Kingdom’s Vision 2030 and the King Salman Renewable Energy Initiative and aims to increase the country’s share in renewable energy production to the maximum extent.
The program aims to diversify local energy sources, stimulate economic development, and achieve sustainable financial stability in the Kingdom.
Awarding projects
The Principal Buyer is responsible for the predevelopment, tendering, and subsequently offtaking of the Energy from the projects, and it awarded over 12.6 GW of renewable energy capacity under NREP.
The SPPC is moving according to the goal approved by the Kingdom within the framework of Vision 2030 towards achieving clean energy and 2060 zero goals set by the state.
The Saudi Power Procurement Company announced the successful signing of a power purchase agreement (PPA) for the 1,100 MW al-Henakiyah Solar PV project.
The project’s PPA was signed with an Abu Dhabi Future Energy Company PJSC (Masdar) consortium, EDF Renouvelables, and Nesma Company Ltd.
Furthermore, the agreement also included the Tabarjal Solar PV project with a total capacity of 400 MW.
The project’s PPA was signed with a consortium consisting of Jinko Power (HK) Company Limited, Sun Glare Holding Co. Ltd., and Sunlight Energy Holding Co. Ltd. with a levelized cost of electricity (LCOE) of 1.7 cents/kWh (6.40 halals/kWh).
It will contribute to supplying power to around 75,000 residential units annually.
The Ministry of Energy supervises the National Renewable Energy Program and is an extension of the energy ecosystem’s efforts towards realizing Vision 2030’s objectives, achieving the optimal energy mix, and displacing liquid fuels in the Kingdom’s power sector.
