SPPC announces winning bidders for four conventional IPP projects

Each of four projects received five bids and they are expected to attract investments of around $7.8 billion, winning consortiums will develop each project on a BOO basis; PIF head says Kingdom moving to 50% renewables by ‘30

The Saudi Power Procurement Company (SPPC) this week, the winning bidders for the Taiba-1, Taiba-2, Qassim-1, and Qassim-2 Conventional IPPs projects. Each project has a power production capacity of 1.8 gigawatts (GW).

Energy mix plan

These conventional IPP projects are part of the energy mix plan, which is under the supervision of the Ministry of Energy and aims to meet the future load demand of the electrical system. The energy mix plan will also ensure the reliability and security of the energy supply, localize the gas turbine industry, and allow for the utilization of carbon capture technologies, according to a Saudi Press Agency report.

Furthermore, for the Saudi Green Initiative to reach net-zero greenhouse gases (GHGs) by 2060, advanced technologies in support of circular carbon economy strategies will be implemented.

SPPC issued the Request for Proposals (RFP) for these Conventional IPP projects in January this year, five bids were received for the Taiba-2 and Qassim-2 projects in July. Five bids were received for the Taiba-1 and Qassim-1 projects in August. All bids were evaluated to ensure compliance with the RFP's technical and commercial requirements.

All the details

Work is currently in progress for completion of the award requirements in their final form according to the tendering documents for the winning consortiums with the lowest price for the Taiba and Qassim Conventional IPP projects.

The projects will attract investments of around SAR 29.2 billion ($7.8 billion). Each project will be developed on a build, own, and operate (BOO) basis by the winning consortiums, which will be 100% owned by the successful bidder. Additionally, each project company will enter into a 25-year power purchase agreement with SPPC.

 

Project	Winning Consortium	Managing Member	Technical Member	Consortium Member	Location
Taiba 1	Saudi Electricity Company + International Company for Water and Power Projects (ACWA Power)	Saudi Electricity Company	International Company for Water and Power Projects (ACWA Power)	-	Taiba – Western Medina Region
Taiba 2	Al Jomiah Energy and Water + EDF + Buhur for investment	Al Jomiah Energy and Water	EDF	Buhur for investment	Taiba – Western Medina Region
Qassim 1	Saudi Electricity Company + International Company for Water and Power Projects (ACWA Power)	Saudi Electricity Company	International Company for Water and Power Projects (ACWA Power)	-	South of Buraidah city
Qassim 2	Al-Jomiah Energy and Water + EDF + Buhur for investment	Al-Jomiah Energy and Water	EDF	Buhur for investment	Southeast of Buraidah city

 

The projects will contain the latest Class H/J Gas Turbines of the highest efficiency in combined cycle operation, the first of their kind in the Kingdom of Saudi Arabia, and will allow for the utilization of carbon capture technologies. These projects will supply power to approximately three million residential units annually. They will also adhere to the local content requirements.

Accelerating the drive to renewables

This news comes on the heels of Saudi Arabia’s drive to expand renewable energy sources and save hydrocarbon resources.

Zawya Projects reported this week that Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF), told an international investment conference in Riyadh that the Kingdom is moving ahead with projects to boost the share of solar energy and other renewables to half the energy mix in Saudi Arabia by 2030.

“Work in this regard is proceeding at an increasing pace and is based on clear and thoughtful plans, supported by a political will,” said Mr. Rumayyan at the Future Investment Initiative (FII) conference in Riyadh, as reported by Zawya.

“There is a need to continue investing in renewable energy to ensure a more sustainable future.”

Energy & Utilities (E&U) has reported on multiple projects, undertaken by Saudi Arabian entities, and their partners, working towards increasing renewable energy production and sustainable living.

E&U reported last year that Saudi Arabia had issued the RFP for the 3.6 GW Taiba power project.

Photo credit: SPPC

Table credit: Saudi Press Agency (SPA)