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Saudi Arabia Reveals Bidders for 3rd Phase of Renewable Energy Projects

A solar plant is seen in Uyayna, north of Riyadh, Saudi Arabia April 10, 2018. REUTERS/Faisal Al Nasser
A solar plant is seen in Uyayna, north of Riyadh, Saudi Arabia April 10, 2018. REUTERS/Faisal Al Nasser
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Saudi Arabia Reveals Bidders for 3rd Phase of Renewable Energy Projects

A solar plant is seen in Uyayna, north of Riyadh, Saudi Arabia April 10, 2018. REUTERS/Faisal Al Nasser
A solar plant is seen in Uyayna, north of Riyadh, Saudi Arabia April 10, 2018. REUTERS/Faisal Al Nasser

The Saudi Ministry of Energy announced the list of bidders of 1,200 MW Saudi renewable energy projects, consisting of four independent generation projects (IPP).

This phase consists of four independent solar photovoltaic generation projects with a total capacity of 1,200 megawatts, divided into two categories.

In a statement, the ministry said that the first category consists of the Wadi Al-Dawasir project with a capacity of 120 MW and the Laila project with a capacity of 80 MW.

The second category consists of the Al-Rass project with a capacity of 700 MW and the Saad project with a capacity of 300 MW.

The ministry added that a Request for Proposal brochure was issued for the two category B projects on April 8, 2020, and the two category A projects on April 22, 2020. Three bids were submitted for each of the four projects during the second quarter of 2021.

The winning bids will sign power purchase agreements for a period of 25 years with the Saudi Energy Procurement Company. ACWA Power, French Total Solar Company and AlFanar Energy Company were among the bidders.

All four projects are required to comply with local content requirements based on the mechanisms identified by the Local Content and Government Procurement Authority, the ministry underlined.

This comes as part of the efforts of the Ministry of Energy to achieve the objectives of the Custodian of the Two Holy Mosques’ renewable energy initiative.

The initiative aims to increase the percentage of renewable energy to reach the optimal mix, raise the efficiency of the electricity sector, and achieve environmental goals by reducing carbon dioxide emissions, as well as the economic goals of reducing dependence on liquid fuels in electricity production.

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FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
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ECB's Lagarde Renews Integration Call as Trade War Looms

FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo
FILE PHOTO: European Central Bank President Christine Lagarde and Governor of the Bank of Finland Olli Rehn arrive at the non-monetary policy meeting of the ECB's Governing Council in Inari, Finnish Lapland, Finland February 22, 2023. Lehtikuva/Tarmo Lehtosalo via REUTERS//File Photo

European Central Bank President Christine Lagarde renewed her call for economic integration across Europe on Friday, arguing that intensifying global trade tensions and a growing technology gap with the United States create fresh urgency for action.
US President-elect Donald Trump has promised to impose tariffs on most if not all imports and said Europe would pay a heavy price for having run a large trade surplus with the US for decades.
"The geopolitical environment has also become less favorable, with growing threats to free trade from all corners of the world," Lagarde said in a speech, without directly referring to Trump.
"The urgency to integrate our capital markets has risen."
While Europe has made some progress, EU members tend to water down most proposals to protect vested national interests to the detriment of the bloc as a whole, Reuters quoted Lagarde as saying.
But this is taking hundreds of billions if not trillions of euros out of the economy as households are holding 11.5 trillion euros in cash and deposits, and much of this is not making its way to the firms that need the funding.
"If EU households were to align their deposit-to-financial assets ratio with that of US households, a stock of up to 8 trillion euros could be redirected into long-term, market-based investments – or a flow of around 350 billion euros annually," Lagarde said.
When the cash actually enters the capital market, it often stays within national borders or leaves for the US in hope of better returns, Lagarde added.
Europe therefore needs to reduce the cost of investing in capital markets and must make the regulatory regime easier for cash to flow to places where it is needed the most.
A solution might be to create an EU-wide regulatory regime on top of the 27 national rules and certain issuers could then opt into this framework.
"To bypass the cumbersome process of regulatory harmonization, we could envisage a 28th regime for issuers of securities," Lagarde said. "They would benefit from a unified corporate and securities law, facilitating cross-border placement, holding and settlement."
Still, that would not solve the problem that few innovative companies set up shop in Europe, partly due to the lack of funding. So Europe must make it easier for investment to flow into venture capital and for banks to fund startups, she said.