Masdar, EDF Energies lead bidding for Saudi’s $300 million solar plant

KHOBAR / Reuters

Abu Dhabi Future Energy Company (Masdar) and EDF Energies Nouvelles have submitted the lowest bid to build the first utility-scale solar plant in Saudi Arabia, reports said. The 300-megawatt solar photovoltaic (PV) project is in Sakaka, the Al Jouf Province in the north of the kingdom.
The two companies submitted a joint bid for a levelised cost of electricity (LCOE) of 6.69 halalas/KWH ($0.0178/KWH). Saudi-based Acwa Power came second with 8.78 halalas/kwh.
LCOE comprises the cost of generating a megawatt-hour (MWh) of electricity; the upfront capital and development cost; the cost
of equity and debt finance and
operating and maintenance fees.
“All of the bids opened today (Tuesday) will now undergo stringent technical, financial and legal evaluation,” Turki Al Shehri, the head of the Energy Ministry’s Renewable Energy Project Development Office said. He did not comment on the bids for the project, which he said would be awarded to the bidder with the lowest LCOE which meets all compliance criteria, including a 30 percent local content requirement. The bid evaluation will be a three-month process, with a targeted power purchase agreement (PPA) effective day by January 27, he added.
In April, Saudi kicked off the massive renewable programme in Riyadh by announcing the beginning of the bidding process for the Sakaka project, which is expected to come online by 2018-2019. The Sakaka project is estimated to cost around $300 million.
The winning bidders will build, own and operate the power plants in partnership with the government. The government plans to generate 9.5 gigawatts (GW) of electricity from renewable sources a year by 2023 through wind and solar projects, involving up to
$50 billion worth of investments.
The 9.5 GW target is expected to be exceeded, Shehri told Reuters in August, to highlight the kingdom’s long-term commitment to green energy.