ACWA Power wins 300 MW solar project in Saudi Arabia
The Renewable Energy Project Development Office (REPDO) within the Ministry of Energy, Industry and Mineral Resources in Saudi Arabia has awarded the Sakaka IPP PV solar project, the first utility scale renewable energy project in the country, to ACWA Power.
The plant will be located in Al Jouf, in the north of the country, at a site spanning over 6km2 and will have a total installed capacity of 300 MW. The total investment is estimated to be US$302 million.
ACWA Power has secured a 25-year power purchase agreement (PPA) for the project with a tariff of US$0.023417/kWh, a new world record.
As reported on this platform, the company was shortlisted for the award last month, surprisingly ahead of the lowest bidder. This followed the submission of eight bids by prequalified firms in October 2017. The tender for the project was first launched by REPDO in February 2017.
This plant is the first in a planned series of procurements within Saudi Arabia's ambitious national renewables programme. The aim of the first phase is to produce 9.5 GW of renewable energy by 2023. The programme seeks to maximize the utilization of renewable energy sources, as defined by the National Transition Plan 2020 and the objectives of the Saudi Vision 2030.
Mohammad Abdullah Abunayyan, Chairman of ACWA Power, has praised REPDO for its conduct of the procurement process, stating that the authority has set an impeccable template for all future procurements within the major programme.
Despite its groundbreaking nature, this is not ACWA Power's first IPP in Saudi Arabia. The company own a 32% stake in the 850 MW Shuqaiq Independent Water & Power Project (IWPP), a 212,000 m3/day desalination plant on the south-west coast.
The company also participated in a solar tender launched in June 2016 concerning two 50 MW projects. Despite publishing a list of pre-qualified teams in October 2016, Saudi Electricity Company (SEC), the contracting authority, cancelled the tender in March last year.
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