Saudi Arabia opens bidding on 3 renewable projects totaling 3,200 MW

Summary

• Saudi Power Procurement Company opened qualification for three solar and wind projects with 3,200 MW combined capacity.
• The projects form the eighth round of the National Renewable Energy Program, supervised by the Ministry of Energy.
• The program targets renewables and storage at roughly 50% of the power mix by 2030.

The latest

Three new renewable energy projects with a combined capacity of 3,200 megawatts are now open for developer qualification, the Saudi Power Procurement Company announced. The company, which acts as the kingdom's principal buyer, said the projects make up the eighth round of the National Renewable Energy Program, split between 1,900 MW of solar and 1,300 MW of wind.

Details

• The solar projects: Two photovoltaic plants are on offer, according to the Saudi Power Procurement Company: the Tumair project in the Riyadh region at 900 MW, and the Sharq Al Amwah project in the Asir region at 1,000 MW. Together they account for 1,900 MW of the round's total capacity.
• The wind project: The third and largest asset is the Al Muzayri'ah wind project in the Makkah region, rated at 1,300 MW. It is the only wind component in this round and alone represents more than 40% of the 3,200 MW being tendered.
• Who is tendering: The Saudi Power Procurement Company said it serves as the principal buyer, preparing preliminary studies and floating electricity production projects for competition. The announcement was carried by the Saudi Press Agency.
• The contracts: Beyond the tender itself, the company signs power purchase agreements and energy storage service agreements with the winning developer consortiums, according to its statement. That structure gives successful bidders long-term offtake certainty on output.
• The oversight: The eighth round falls under the National Renewable Energy Program, which the Ministry of Energy leads and supervises, the company said. The program is designed to tap renewable resources across different regions of the kingdom rather than concentrate capacity in one area.
• The fuel goal: One stated objective is displacing liquid fuel from the electricity generation sector, according to the company. Saudi Arabia still burns crude and other liquids to generate power, making substitution a direct lever on domestic hydrocarbon consumption.
• The 2030 target: The company said the broader aim is an optimal generation mix in which renewable sources and energy storage systems account for about 50% of the power mix by 2030, a benchmark that frames each successive tender round.
• What was not set out: The announcement did not name a deadline for qualification submissions, did not identify any prospective bidders, and did not disclose expected investment values or commercial operation dates for the three projects.

Background

The National Renewable Energy Program runs in successive rounds, with the Saudi Power Procurement Company acting as sole offtaker for electricity produced. Earlier rounds followed the same structure: qualification, competitive bidding, then long-term purchase agreements with developer consortiums.

Between the lines

The split tells its own story. Wind takes 1,300 MW in a single Makkah-region project, the largest asset in the round, while solar is divided across two regions, Riyadh and Asir. That spread matches the stated aim of drawing on renewable resources in different parts of the kingdom, and pairing generation tenders with storage service agreements signals that intermittency is being priced into the program rather than deferred.

What's next

Watch for the qualification deadline and the shortlist of prequalified developers, then the bid round itself and the signing of power purchase and storage agreements for Tumair, Sharq Al Amwah and Al Muzayri'ah.

Source: Saudi Press Agency and the Saudi Power Procurement Company