The Saudi Power Procurement Company (SPPC) has shortlisted two consortiums, led by Abu Dhabi Future Energy Company (Masdar) and China’s Jinko Power, to develop 1.5GW of solar projects in Saudi Arabia, Zawya reported.
SPPC selected the two consortiums under the fourth round of the National Renewable Energy Program (NREP), which includes the 1.1GW Al Henakiyah and 400MW Tabrajal solar projects. These projects will be developed under the build, own and operate model.
Construction on the two projects is expected to begin next year, with operations scheduled to start in 2026.
NREP aims to add renewables to the country’s energy mix by up to 50% by 2030.
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SPPC launched the request for proposals (RFPs) for the fourth round last December. In June this year, it received three proposals for each of the projects.
For the 1.1GW Al Henakiyah solar project, the consortium of Masdar, EDF Renouvelables and Nesma Company was shortlisted. Its bid for a levelised cost of electricity (LCOE) was SR0.0631575 per kilowatt-hour (/kWh) ($0.0168420/kWh).
The second-lowest bidder for this project was the consortium of Jinko Power, Sun Glare and Sunlight Energy, which submitted a LCOE bid of SR0.0642126/kWh ($0.0171234/kWh).
For the 400MW Tabrajal solar project, the lowest bid was placed by the consortium of Jinko Power, Sun Glare and Sunlight Energy. The LCOE for the bid was SR0.0640482/kWh ($0.0170795/kWh).
The second-lowest bidder was Masdar’s consortium, which bid for an LCOE of SR0.0725967/kWh ($0.0193591/kWh).
The estimated construction cost of these two projects is $1.06bn (SAR4bn). Once built, the projects are expected to generate enough energy to power approximately 265,000 residential units annually.
The power from the projects will be sold under a 25-year power purchase agreement with SPPC.