Groups submit fresh bids for Waad al-Shamal integrated power plant

15 September 2015

Commercial prices were originally submitted in July

  • Two lowest bidders have been invited to submit fresh prices for integrated solar and combined-cycle power plant
  • Eight groups had submitted bids for $1.3bn Waad al-Shamal power plant
  • Plant will contain 1,000MW conventional combined-cycle technology and 50MW solar component

The two lowest bidders have resubmitted prices for the contract to build a 1,050MW integrated solar and combined-cycle (ISCC) plant in the Waad al-Shamal industrial development to the north of Saudi Arabia.

According to sources close to the project, the two lowest bidders in the original bidding round, a consortium of the local Al-Fanar Construction and Germany’s Siemens, and a joint venture of Abener, part of Spain’s Abengoa group, and the US’ GE have submitted fresh prices for the project.

MEED reported in July that eight groups had submitted bids for the main engineering, procurement and construction (EPC) contract.

The Al-Fanar consortium submitted the lowest levelised cost of electricity (lcoe) bid of SR0.1889 (5 cents) a kilowatt hour (kWh). This was in spite of its SR4.85bn total EPC price, containing lump sum turn key and long term service agreeements, being higher than the SR4.546bn total from the consortium of Abener and GE.

The Abener consortium’s LCOE of SR0.1894 per kwH was the second bid received.

MEED recently reported that Saudi Electricity Company (SEC) had considered dropping the 50MW solar element from the scheme due to the significant extra cost. However, by inviting the two groups to resubmit prices, it is hoping to proceed with the scheme as originally planned, which includes 1,000MW of conventional combined-cycle technology and a 50MW solar component.

SEC is also in negotiations with Spain’s Initec Energia for the Duba ISCC plant.

According to sources close to the project, SEC is in final negotiations and financial discussions with the Spanish firm for the ISCC, which will include a gas-fired combined-cycle capacity of 485-550MW, and a solar output of 40-50MW.

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