Saudi Arabia opens wind bids

SAUDI ARABIA: The Renewable Energy Project Development Office (REPDO) and the Ministry of Energy, Industry and Mineral Resources (MEIM) have received bids of between $21.30/MWh and $33.86/MWh for the 400MW Dumat Al Jandal project.

GE commissioned Saudi Arabia's first utility-scale turbine mid-January 2017 for Aramco

REPDO and MEIM opened bids from four pre-qualified bidders in the process launched in July 2017.

However, the agencies pointed out the bidder with the lowest price may not be awarded the project licence.

"REPDO said the bid opening results announced do not represent a ranking of bidders or a bidder’s compliance with RFP requirements of the project, nor do they constitute a determination by REPDO of the outcome of the bidding process," MEIM said in a statement. 

An EDF-led consortium placed the lowest bid of SAR 79.97/MWh (21.30/MWh).

Meanwhile, an Engie-led consortium (SAR 88.70/MW), ACWA Power (SAR 101.13/MWh) and an Enel Green Power-led consortium (SAR 127.14/MWh) also had bids opened by the agencies.

Bidding company or consortium Bid price
EDF Renewables, Abu Dhabi Future Energy-Masdar $21.30/MWh
Engie, Saudi Services for Electro Mechanic Works $23.62/MWh
ACWA Power & Martifer Renewables $26.93/MWh
Enel Green Power, Al Babtain Contracting $33.86/MWh

The 400MW Dumat Al Jandal site will be the country's first commercial scale project.The country's first utility-scale turbine was installed in January 2017.

MEIM said the site should experience class II and class III wind speeds and generate 1.4TWh annually. 

"The Kingdom’s first utility-scale wind project opens a new chapter in our journey towards a diversified energy mix.

"The $500 million Dumat Al Jandal wind farm in the northern Al Jouf region will generate enough power to supply up to 70,000 Saudi households as it connects to the northern electricity grid," said Khalid Al Falih, minister of energy, industry and mineral resources.


The bid prices are surprisingly low for a country just starting out in the wind power energy space. 

It compares to some of the lowest onshore wind bid prices seen anywhere in the world. In Mexico's November power procurement round, wind prices fell to an average of $20.57/MWh, and a record lowe of $18.86/MWh secured. 

In Turkey's 1GW Yeka round, also awarded last year, a Siemens Gamesa-led consortium won with a surprisingly low bid of $34.80/MWh. 

Saudi Arabia's tender is the first phase of Saudi's National Renewable Energy Programme aiming at 9.5GW of wind and solar by 2023.