Abu Dhabi's Masdar missed out despite submitting record lowest bid
Saudi Arabia’s Renewable Energy Project Development Office (REPDO) has shortlisted local firm Acwa Power and a consortium led by Japanese conglomerate Marubeni Corporation to develop a 300MW solar photovoltaic generation plant in Sakaka, Al Jouf, in the north-west of Saudi Arabia.
The initial RFP from REPDO received eight responses in total, including a world-record low bid of just 1.7856 US cents per kilowatt hour (kWh) from Abu Dhabi Masdar’s and EDF Energies Nouvelles, while Acwa Power’s bid was significantly higher at 2.342 US cents/kWh.
The bid from Marubeni, which heads a consortium that also includes Khaled Ahmed Juffali Energy & Utilities Limited and Axia Power Holdings BV, was higher still at 2.66 US cents/kWh.
Despite the price difference, though, the latter two have been selected after an evaluation process that the Saudi Government claimed took into account overall compliance with the RfP’s objectives including local content mandates.
“All eight bids that were submitted have been subjected to a detailed evaluation of material compliance to RFP requirements, including the 30 percent local content component for Round 1 NREP projects,” said a statement from REPDO.
“All companies that have submitted bids for R1 Sakaka PV RFP are invited to participate in future projects of the NREP.”
The Sakaka project as part of Round 1 of the National Renewable Energy Program (NREP) and the project will be officially awarded later this month – backed by a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC).
The project involves the development, design, engineering, financing, procurement, construction, commissioning, testing, completion, ownership, insurance, operation and maintenance of a green-field solar PV plant. The project is expected to have a total capacity output at interconnection not exceeding at any time 300MW capacity of electricity generation.