Riyadh – Mubasher: Saudi Arabia’s Ministry of Energy, Industry and Mineral Resources has said that its Renewable Energy Project Development Office has opened the bids presented for the 300 mega-watt (MW) photovoltaic plant in Sakaka city, Al Jouf.
A total of eight tenders were submitted by pre-qualified local, regional, and international companies and alliances, the ministry said in a broadcast and statement on Tuesday.
The high level of bidders indicates the Kingdom’s strong investment appeal in the emerging renewable energy sector.
Through the project, which is Saudi Arabia’s first solar-powered plant, the Saudi government aims to produce electricity from solar energy to reduce its heavy reliance on oil.
Bidding values ranged between 6.9 halalas per kilowatt-hour (kWh) and 12.62 kWh, registering a new global record low in the field of solar power projects, the Saudi ministry said via its official Twitter account.
Speaking during a webcast of the bid-opening ceremony in Riyadh, Saudi energy minister Khalid Al Falih said that Abu Dhabi-based Masdar along with Electricite de France (EDF) submitted a bid to supply power for the 300 MW photovoltaic plant for 6.7 halalas per kWh (around 1.79 cents).
If the tender is awarded to the Masdar alliance it would beat the previous record of 2.42 cents per kWh for a solar project in Abu Dhabi, the UAE, according to Bloomberg.
The winning bid will be revealed on 27 January 2018, the Saudi ministry highlighted.
The Sakaka project will contribute to providing direct and indirect job opportunities to the country’s youth in Al Jouf.
Under its developmental Vision 2030, Saudi Arabia seeks to bolster is electricity production from renewable energy to 9.5 gigawatt (GW) by 2023. Announced in 2016, the Vision 2030 aims to diversify the kingdom’s economy resources and reduce its reliance on oil.
Saudi Arabia’s renewable energy programme entails $30 billion to $50 billion in investments by 2023.
