Saudi Arabia aims to install 58,700MW of renewable energy capacity by 2030

Published on October 31, 2023

State offtaker Saudi Power Procurement Company (SPPC) has received bids for the contracts to develop Saudi Arabia’s next wind independent power producer (IPP) projects.

According to industry sources, the following developer teams have submitted proposals for the contracts to develop the three wind IPP schemes:

  • Acwa Power (Saudi Arabia) / TotalEnergies Renewables (France)
  • EDF Renewables (France) / Masdar (UAE) / Nesma Company (local)
  • Engie (France) / Albawani Company (local) /  Haji Abdullah Alireza & Company (Haaco, local)
  • Marubeni Corporation (Japan) / local partner
  • Sumitomo (Japan) / Aljomaih Energy & Water Company (Jenwa, local) / Shikoku Electricity Power Company (Japan)

The projects, procured under the fourth round of the kingdom’s National Renewable Energy Programme (NREP), have a total combined capacity of 1,800MW.

These include:  

  • Yanbu wind IPP: 700MW
  • Al-Ghat wind IPP: 600MW
  • Waad al-Shamal wind IPP: 500MW

SPPC qualified 18 companies to bid for the contracts, as MEED reported in December 2022. The last day for bid submissions is 30 October.

The financial advisory division of Tokyo-based Sumitomo Mitsui Banking Corporation is advising SPPC on procuring the three wind IPPs.

Saudi Arabia has procured only one wind IPP under the NREP so far.

Tendered under round two, the 400MW Dumat al-Jandal wind IPP was connected to the Saudi electricity grid last year.

A team of EDF Renewables and UAE-based Abu Dhabi Future Energy Company (Masdar), which won the $500m contract in 2019, is developing and operating the scheme. 

Saudi Arabia aims to install 58,700MW of renewable energy capacity by 2030 through the NREP.

The energy ministry, through SPPC, is tasked with procuring 30 per cent of this capacity through public tendering, while the Saudi sovereign wealth vehicle, the Public Investment Fund, will procure the rest under the kingdom’s Price Discovery Scheme.

Both initiatives aim to drive renewable sources to account for 50 per cent of electricity production in Saudi Arabia by 2030, displacing liquid fuels, with natural gas accounting for the remaining 50 per cent.