Saudi Arabia’s Renewable Energy Project Development Office (Repdo) has invited developers to submit prequalification documents for seven photovoltaic (PV) solar projects under the second round of the kingdom’s National Renewable Energy Programme (NREP).
MEED previously reported that developers had been invited to submit expressions of interest by 14 February. According to sources close to the programme, developers have now been invited to submit prequalification documents by 8 April.
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By GlobalDataThe seven solar projects will have a combined total capacity of 1.51GW.
Each project will be developed under a build, own and operate model, with the successful winning bidder for each project to sign a 25-year power purchase agreement with the kingdom’s offtaker.
The winning bidding group will form a special purpose vehicle to operate each plant, and will own 100% of the asset.
The seven projects under the second round of the NREP are:
- Medina solar PV independent power project (IPP): Medina Province, approximately 26 kilometres from Medina city (50MW)
- Rafha solar PV IPP: Northern Borders province, approximately 16km from Rafha city (45MW)
- Qurayyat solar PV IPP: Al-Jawf Province, approximately 15km from Qurayyat city (200MW)
- Al-Faisaliah solar PV IPP: Mecca Province, approximately 80km south of Jeddah city (600MW)
- Rabigh solar PV IPP: Mecca Province, approximately 145km north of Jeddah city (300MW)
- Jeddah solar PV IPP: Mecca Province, approximately 50km southeast of Jeddah city (300MW)
- Mahd al-Dahab solar PV IPP: Medina Province, approximately 150km southeast of Medina (20MW)
While all of the seven projects will be procured along broadly similar lines, they will be split into two groups for financing requirements. For category ‘A’ projects – which incudes the Medina, Rafha and Mahd al-Dahab schemes – the IPPs will be financed through “corporate finance procured on the balance sheets of the successful bidders’ consortium members and/or through the raising of limited or non-recourse debt facilities.”
For the remaining four projects, category ‘B’ schemes, the IPPs will financed through the raising of limited or non-recourse debt facilities.
Repdo’s second round advisers are Japan’s Sumitomo Mitsui Banking Corporation (SMBC) as lead and financial adviser, the UK’s DLA Piper as legal adviser, and Germany’s Fichtner as technical adviser.
The kingdom recently revised its renewable energy targets, now targeting an ambitious 27.3GW of clean energy by 2024 and 58.7GW by 2030. The 2024 target will include 20GW of PV solar, with the 2030 target including PV solar capacity of 40GW.
Repdo will spearhead the development of 30% of the total capacity, with sovereign wealth fund Public Investment Fund to oversee development of the remaining 70%.
MEED
This article is sourced from Power Technology sister publication www.meed.com, a leading source of high-value business intelligence and economic analysis about the Middle East and North Africa. To access more MEED content register for the 30-day Free Guest User Programme.https://www.meed.com/registration/
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