Saudi Arabia Shortlists Bidders for 3.7 GW of Solar PV Projects in Fifth Round of Renewable Energy Program

Saudi Arabia shortlists bidders for 3.7 GW of solar PV projects in its National Renewable Energy Program, advancing its goal of 50% renewable energy by 2030.

The Saudi Power Procurement Company (SPPC) has announced the shortlisted bidders for the fifth round of Saudi Arabia’s National Renewable Energy Program (NREP), encompassing 3.7 GW of solar PV projects. This marks a significant step in Saudi Arabia's push toward clean energy, aligning with the nation's broader goal of achieving 50% renewable energy in its power mix by 2030.

Key Solar PV Projects and Bidders

The fifth round of the NREP includes four major solar PV projects located in different provinces across Saudi Arabia:

1) 2 GW Al Sadawi Plant (Eastern Saudi Arabia)

The shortlisted bidders for this project include:

• A consortium comprising the UAE’s Masdar, Korea Electric Power Corporation (KEPCO), and GD Power Development, with a price bid of US$1.29c/kWh.

• A consortium formed by China’s State Power Investment Corporation (SPIC) and France’s EDF Renouvelables, with a price bid of US$1.31c/kWh.

  
  

2) 1 GW Al Masaa Project (Hail Province)

Shortlisted bidders:

• SPIC and EDF consortium, offering a price of US$1.31c/kWh.

• A consortium including Saudi-based Al Jomaih Energy and Water Company and France’s TotalEnergies, with a price bid of US$1.36c/kWh.

3) 400 MW Al Henakiyah 2 Plant (Madinah Province)

Bids include:

• A consortium of SPIC, EDF, and KEPCO, offering US$1.40c/kWh.

• A consortium made of the UAE’s Masdar and Saudi energy company Nesma, offering US$1.52c/kWh.

  
  

4) 300 MW Rabigh 2 Project (Makkah Province)

Shortlisted bids include:

• Al Jomaih Energy and Water Company, TotalEnergies, and KEPCO, offering US$1.78c/kWh.

• A consortium of Nesma and Masdar, offering US$1.89c/kWh.

Saudi Arabia's Push for Renewables

As of the end of 2023, Saudi Arabia’s installed solar capacity stood at 2.3 GW, representing only 2.5% of the country’s total energy capacity and less than 1% of its total power generation. The Kingdom’s renewable energy goals are ambitious, aiming for 50% of its power mix to come from renewable sources by 2030 and a target of reaching net-zero emissions by 2060.

These new solar PV projects are a crucial part of the nation's strategy to diversify its energy sources away from fossil fuels and drive the adoption of clean energy technologies.

A Competitive Bidding Landscape

The competitive bids in this round of the NREP showcase a growing interest from global energy players, with major international companies like Masdar, TotalEnergies, KEPCO, SPIC, and EDF taking center stage. The low bidding prices, such as the US$1.29c/kWh offer for the 2 GW Al Sadawi project, highlight the increasing competitiveness of solar energy in the region.