28-Jan-2019: The Ministry of Energy, Industry and Mineral Resources (MEIM) is the party which has been given the responsibility for achieving the energy related objectives set out in Saudi Arabia’s Vision 2030 and in order to do so MEIM has created a new office, namely the Renewable Energy Project Development Office (REPDO) to execute the Kingdom’s renewable energy plan.
Vision 2030 sets out the Kingdom of Saudi Arabia’s vision to reduce the country’s dependence on oil and to diversify the economy. The Kingdom aims to reach planned capacity of 40 GW of solar PV by 2030 with an interim target of 20 GW by 2024.
Under the first round of the National Renewable Energy Programme (NREP), REPDO has successfully awarded the two first greenfield renewable IPPs in the Kingdom, namely the 300 MW Sakaka Solar PV Independent Power Plant (IPP) and the 400 MW Dumat Al Jandal Wind IPP.
REPDO is now embarking into the second round of the NREP and is therefore pleased to invite expressions of interest (EOI) for the development, design, permitting, engineering, financing, procurement, construction, commissioning, testing, completion, ownership, insurance, operation and maintenance of seven (7) additional greenfield solar PV IPPs with a combined potential capacity of 1.515GW.
REPDO expects these projects to employ around 5,000 people in the Kingdom and supply more than 220,000 households.
Round 2 of the NREP includes the following projects :
- Madinah Solar PV IPP with a capacity of 50 MW to be located in the Al Madinah Province, approximately 26 km from Madinah city
- Rafha Solar PV IPP with a capacity of 45 MW to be located in the Northern Borders province, approximately 16 km away from Rafha city
- Qurayyat Solar PV IPP with a capacity of 200 MW to be located in the Al Jawf Province, approximately 15 km away from Qurayyat city,
- Al Faisaliah Solar PV IPP with a capacity of 600 MW to be located in the Makkah Province, approximately 80 km south of Jeddah city,
- Rabigh Solar PV IPP with a capacity of 300 MW to be located in the Makkah Province, approximately 145 km north of Jeddah city,
- Jeddah Solar PV IPP with a capacity of 300 MW to be located in the Makkah Province and approximately 50 km south-east of Jeddah city,
- Mahd AlDahab Solar PV IPP with a capacity of 20 MW to be located in the Al Madinah Province, approximately 150 km southeast of Madinah.
The above projects may, at REPDO’s discretion, be tendered on a standalone basis or grouped.
For each tender, REPDO will conduct a competitive process to select a developer or developer consortium for the development, design, permitting, engineering, financing, procurement, construction, commissioning, testing, completion, ownership, insurance, operation and maintenance of the Project(s), together with associated infrastructure and facilities.
Each Project will be structured on an IPP basis and a dedicated Special Purpose Vehicle (SPV) shall be established to undertake the construction and operation of the Project. The SPV will enter into a long-term power purchase agreement with the Saudi Power Procurement Company, which was established in 2017 to act as the offtaker of power in the Kingdom under the unbundled electricity sector structure.
REPDO is being advised by:
- Sumitomo Mitsui Banking Corporation (DIFC Branch) as Lead and Financial Adviser;
- DLA Piper Middle East LLP as Legal Adviser; and
- Fichtner GmbH & Co. KG as Technical Adviser
Interested parties should express their interest to participate in the tender process by 14 February 2019.
