Key Impact Points:

• SAR 8 Billion Investment: Saudi Arabia’s National Renewable Energy Programme (NREP) will attract over $2.12 billion in investments for solar projects.
• Major Consortiums: Masdar, EDF, and TotalEnergies lead the shortlisted consortiums for four solar IPP projects.
• 25-Year Power Agreements: Successful bidders will enter into 25-year power purchase agreements with SPPC.

The Saudi Power Procurement Company (SPPC) has shortlisted major global players, including Masdar, EDF, and TotalEnergies, for the fifth round of solar projects under the National Renewable Energy Programme (NREP). These projects are expected to attract investments exceeding SAR 8 billion ($2.12 billion) and will operate under a Build, Own, and Operate (BOO) model.

Project Breakdown

The shortlisted projects include:

• 2000 MWac Al Sadawi IPP (Eastern Province)
• 1000 MWac Al Masa’a IPP (Hail)
• 400 MWac Al Henakiyah 2 IPP (Madinah)
• 300 MWac Rabigh 2 IPP (Makkah Province)

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Global Consortiums Competing

Consortiums led by Masdar, Korea Electric Power Corporation, EDF Renouvelables, and TotalEnergies are vying for key solar projects. The pricing for these projects varies, with the Al Sadawi IPP offering prices as low as 1.29 USDc/kWh, and the Rabigh 2 IPP seeing offers up to 1.78 USDc/kWh.

SPPC received six bids for each project, ensuring compliance with technical and commercial standards, and the selected consortiums will enter 25-year power purchase agreements to guarantee long-term renewable energy production.

These initiatives are part of Saudi Arabia’s Vision 2030, aiming to generate 50% of electricity from renewable sources and reduce reliance on liquid fuels in the power sector.