Saudi Arabia’s Renewable Energy Project Development Office (Repdo) has selected the consortium led by Saudi Arabia’s Acwa Power to develop the first major project under the kingdom’s National Renewable Energy Programme (NREP).

The client had shortlisted the Saudi developer along with a consortium led by Japan’s Marubeni earlier in January for the planned 300MW Sakaka photovoltaic (PV) solar plant. According to sources close to the programme, the client has now selected Acwa Power and the contract will be awarded imminently.

The local Acwa Power had submitted the second lowest bid of 2.3417$c/KWh during the competitive biddign submission in October last year. Japan’s Marubeni had submitted the third lowest bid of 2.6603$c/KWh. The client received proposals from eight bidders on 2 October for main contract on the 300MW solar scheme.

Repdo, the body established by the Ministry of Energy, Industry & Mineral Resources to oversee the NREP, received proposals from eight bidders on 2 October for the contract to develop the 300MW Sakaka photovoltaic (PV) solar plant. The client was planning to award the main contract to one of the shortlisted consortiums by the end of January, with a target for financial close to be reached by the end of February. 

A special purpose vehicle, project company, will be formed to develop the project and will be 100 per cent owned by the successful bidder.

Under the 700MW first round of the NREP, a 300MW PV solar project will be developed at a site in Sakaka in the Al-Jouf province and a 400MW wind project will be developed at a site in Dumat al-Jandal.

The NREP sets out a target for 3.45GW of renewable energy to be developed by 2020 under the National Transformation Plan (NTP), and for 9.5GW of renewable energy capacity to be established by 2023.

Repdo will report to a new renewable energy steering committee, chaired by the Minister of Energy, Industry & Mineral Resources Khalid al-Falih. The committee will include the heads of various government stakeholders in the kingdom including: King Abdullah City for Atomic & Renewable Energy (KA-Care), the Electricity & Cogeneration Regulatory Authority (ECRA) and state utility Saudi Electricity Company.