Power purchase agreements signed for Saudi Arabia round two solar projects

Power purchase agreements signed for Saudi Arabia round two solar projects

27 Jan 2021

The power purchase agreements (PPAs) have been signed for independent power producer (IPP) photovoltaic (PV) solar projects in Category B under the second round of Saudi Arabia’s National Renewable Energy Programme (NREP).

The power purchase agreements (PPAs) have been signed for independent power producer (IPP) photovoltaic (PV) solar projects in Category B under the second round of Saudi Arabia’s National Renewable Energy Programme (NREP).

Saudi Arabia’s Renewable Energy Project Development Office (Repdo) shortlisted bidders for five of the six PV Category B solar projects tendered under the second round of the NREP in April last year.

According to sources close to the programme, the PPAs have now been signed between the appointed developers and the offtaker, Saudi Power Procurement Company (SSPC).

For the 300MW Jeddah photovoltaic PV IPP, a consortium of the UAE’s Masdar, France’s EDF and the local Nesma Holding was awarded the contract after submitting a levelised cost of electricity (LCOE) tariff of SRhalalas6.09 per kilowatt hour (SRh/kWh), $cents1.62/kWh in US dollars.

India’s L&T has been appointed by the consortium as engineering, procurement and construction (EPC) contractor for the project.

For the 300MW Rabigh PV IPP, Repdo appointed a consortium of Japan’s Marubeni Corporation and the local Al-Jomaih Energy & Water Company with a LCOE tariff of SRhalalas6.38kWh.

A consortium led by the local Acwa Power was appointed for the 200MW Qurrayat IPP with a submitted LCOE of SR6.688/kWh.

Each project will be developed under a build-own-operate (BOO) model, with the successful bidder holding 100 per cent equity in the special purpose vehicle (SPV) set up to developer and operate the IPP.

Saudi Arabia has set an ambitious target to install 58.7GW of renewable energy capacity by 2030, with Repdo to oversee the development of 30 per cent of this though a competitive IPP tendering programme.

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