July 25, 2018 Read More →

Wind industry coming to oil-rich Saudi Arabia

Windpower Monthly:

The Renewable Energy Project Development Office (REPDO) and the Ministry of Energy, Industry and Mineral Resources (MEIM) have received bids of between $21.30/MWh and $33.86/MWh for the 400 MW Dumat Al Jandal project.

However, the agencies pointed out the bidder with the lowest price may not be awarded the project licence. “REPDO said the bid opening results announced do not represent a ranking of bidders or a bidder’s compliance with RFP requirements of the project, nor do they constitute a determination by REPDO of the outcome of the bidding process,” MEIM said in a statement. 

An EDF-led consortium placed the lowest bid of SAR 79.97/MWh ($21.30/MWh). Meanwhile, an Engie-led consortium (SAR 88.70/MW), ACWA Power (SAR 101.13/MWh) and an Enel Green Power-led consortium (SAR 127.14/MWh) also had bids opened by the agencies.

The 400 MW Dumat Al Jandal site will be the country’s first commercial scale project. The country’s first utility-scale turbine was installed in January 2017. MEIM said the site should experience class II and class III wind speeds and generate 1.4 TWh annually. 

The bid prices are surprisingly low for a country just starting out in the wind power energy space. It compares to some of the lowest onshore wind bid prices seen anywhere in the world. In Mexico’s November power procurement round, wind prices fell to an average of $20.57/MWh, and a record low of $18.86/MWh secured. 

Saudi Arabia’s tender is the first phase of Saudi’s National Renewable Energy Programme aiming at 9.5 GW of wind and solar by 2023.

More: Saudi Arabia opens wind bids

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