The Saudi Power Procurement Company (SPPC), a company responsible for procuring power in Saudi Arabia, has released a list of eligible bidders for the fifth round of solar auction with a combined capacity of 3.7 GW. The projects were announced as part of the country’s National Renewable Energy Programme, and they include several renowned renewable energy providers.
The 2 GW Al Sadawi solar plant, which will be built in the Eastern Province of Saudi Arabia; the 1 GW Al Masa’a project, which will be built in the Province of Hail; and the 400 MW Al Henakiyah 2 and 300 MW Rabigh 2 projects, which will be built in the Provinces of Madinah and Makkah, respectively, are the four solar projects that will be developed under this round.
The SPPC initiated a request for qualifications for these projects in November 2023 and is tasked with their pre-development, tendering and energy off-take. In the combined managerial and technical member category, it has prequalified eighteen companies, including Masdar, Samsung C&T Corporation, SPIC Huanghe Hydropower Development Co., Sumitomo Corporation, and Total Energies Renewables SAS. In the management member category, the following five companies have been approved: Saudi Electricity Company, JERA, GEK TERNA, Gulf Energy Development Public Company, Power Construction Corporation of China, and JERA.
REGlobal’s Views: Saudi Arabia has launched the National Renewable Energy Program as part of which it aims diversify its energy mix by increasing the share of natural gas and renewable energy sources to approximately 50 per cent by 2030. However, the country is still quite far away from meeting its targets. Thus, large auctions are important for promoting renewable energy development in the country and attracting investments in the country. In recent years, the country has witnessed the entry of many foreign investors keen to capitalise on the country’s rich solar potential and carve a share in its growing solar market.
