Saudi Arabia Asks Companies to Bid for Renewable Energy Contracts

Saudi Arabia has launched a renewable energy procurement program with a goal of adding 54 GW of new capacity by 2032.

The government’s King Abdullah City for Atomic and Renewable Energy (K.A.CARE) program published a white paper late last week that explains the competitive procurement process (CPP) for solar PV and solar thermal power plants, wind farms, geothermal facilities and waste-to-energy plants.

Solar energy will play the largest role in the 2032 renewable energy mix, with 16 GW being generated from photovoltaic cells and 25 GW from concentrated solar power. Wind will produce 9 GM, waste-to-energy will produce 3 GW and geothermal will produce 1 GW, according to K.A.CARE.

The CPP is open to new renewable generating facilities with 5MW capacity or more, and to existing facilities that plan to increase their generating capacity by 5 MW or more. Smaller projects that aggregate up to 5 MW capacity or more are eligible so long as they have a common metering point.

The process is also open to phased projects, but they must bid for each phase and a contract award for the first phase doesn’t guarantee awards for subsequent phases.

The CPP will consist of an introductory round with pre-packaged sites identified by K.A.CARE, followed by additional procurement rounds over the next two to three years with a goal of creating up to 7,000 MW new capacity.

The government’s Sustainable Energy Procurement Company (SEPC) will administer the procurement, and execute and manage the power purchase agreements. Qualified proponents can submit proposals electronically through the procurement website.

 

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