The Saudi Arabian Ministry of Energy announced the names of shortlisted bidders in a tender that seeks to award 1,200 MW of solar photovoltaic capacity. This is the third such round of bidding and includes four solar projects grouped under two categories.
Under Category A, ACWA Power and Alfanar company have been shortlisted for the 80 MW Layla project while TOTAL solar INTL and ACWA Power have been shortlisted for the 120 MW Wadi Al Dawasir solar project. Meanwhile, under Category B, Jinko Power and Abu Dhabhi Future Energy Company have been shortlisted for the 300 MW Saad project and ACWA Power and Jinko Power have been shortlisted for the 700 MW Ar Rass project. The lowest LCoE was discovered for the 300 MW Saad project at $14.83 per MWh.
Each of the four projects must adhere to the Local Content and Government Procurement Authority’s local content guidelines. The winning bidders will sign a 25-year power purchase agreement with the Saudi Power Procurement Company.
The renewable energy project development office (REPDO) in Saudi Arabia is progressing forward with plans for the fourth and fifth stages of its ambitious renewable energy programme. The Saudi Ministry of Energy has received proposals from financial services companies for two transaction advisory contracts on 10 photovoltaic (PV) solar projects that will be constructed under the Public Investment Funds (PIF) clean energy initiative. The PIF programme is intended to cover 70 per cent of the kingdom’s 58.7 GW clean energy goals by 2030, with the other 30 per cent being delivered by REPDO.
REGlobal’s Views : Middle eastern nations like Saudi Arabia have historically depended heavily on oil and gas to meet their energy requirements. However, the geopolitics surrounding petroleum industry along with price fluctuations, the need to diversify their energy mix, and the global concerns surrounding climate change have led these nations to transition to cleaner energy sources.