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Saudi Arabia Renewable IPP programme

  • Saudi Arabia
  • Energy and infrastructure

27-04-2017

Saudi Arabia’s Minister of Energy, Industry and Mineral Resources H.E. Khalid A. Al-Falih, officially launched the bidding process for a 300 MW solar power project in Sakaka at the Saudi Arabian Renewable Energy Investment Forum (SAREIF) held in Riyadh this week. The request for proposal (RFP) has been released to pre-qualified bidders who are invited to submit their bids in September with the winner expected to be announced in November 2017.

The Renewable Energy Project Development Office (REPDO) which is part of the Ministry will launch the bidding process for a 400 MW wind power project in Domat al-Jandal in al-Jouf Province later this year. Prequalification for additional projects may be launched later this year to meet the target of 3.65GW by 2020.

Both wind and solar projects will be tendered on a build, operate and own (BOO) basis, with the successful bidders retaining ownership for 20 years for the solar plants and 25 years for wind. The documentation closely follows past precedent although there are notable changes such as the introduction of local content requirements.

H.E. Khalid A. Al-Falih provided further details on the Kingdom’s renewable energy program during a session in which he was joined by senior representatives of the Saudi Electricity Company (SEC), the Electricity & cogeneration regulatory Authority (ECRA), King Abdullah City for Atomic and Renewable Energy (KACARE), Saudi Aramco and the Ministry of Economy and Planning. The program aims to implement 9.5GW of new capacity by 2023 in a range of technologies including PV, CSP, Wind and EfW.

During the forum additional details were provided on planned changes to the electricity sector as part of the National Transformation Plan and Vision 2030. This will include privatization of the power industry, including the creation of four new generating companies, a new single-buyer (initially under the remit of SEC), an independent system operator, and regulatory changes to encourage greater private sector participation, including through the issuance of net-metering regulations.

Eversheds Sutherland have a team based in Riyadh and Dubai which is currently advising on renewable energy projects in the Kingdom.

If you would like to discuss Saudi Arabia's renewable energy programme and any opportunities in the market please contact the team below.

For more information contact

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