SPPC Launches RFQ for 4500 MW Round 6 Renewable Projects

The Saudi Power Procurement Company (SPPC) has issued a request for qualification (RFQ) for the sixth round of solar and wind projects under the National Renewable Energy Program (NREP), with a combined capacity of 4,500 megawatts (MW). The announcement, made on September 26, 2024, marks a significant step in Saudi Arabia’s push to diversify its energy mix and achieve 50% renewable energy in its electricity generation by 2030. The NREP is led and supervised by the Ministry of Energy and represents a cornerstone of the Kingdom’s Vision 2030 goals.

Context and Background

Saudi Arabia has been accelerating its renewable energy ambitions as part of a broader strategy to reduce dependence on fossil fuels and transition to a sustainable energy future. The National Renewable Energy Program, a key initiative under Vision 2030, aims to significantly increase the share of renewable energy in the national grid. The SPPC, a government entity responsible for procuring power from independent power producers (IPPs), has been at the forefront of these efforts, having already awarded over 19 gigawatts (GW) of renewable energy capacity to date.

Round 6 of the NREP follows previous successful rounds that have attracted substantial international investment and expertise. The projects are strategically located across various regions, leveraging Saudi Arabia’s abundant solar and wind resources to ensure optimal energy production and grid integration.

Key Details

The RFQ encompasses five projects, each designed to contribute to the Kingdom’s growing renewable energy portfolio. The 1500 MWac Dawadmi Wind IPP will be located in the Riyadh region, harnessing the area’s wind potential. The 1400 MWac Najran Solar PV IPP in the Najran region will capitalize on high solar irradiance. Additionally, two solar projects in the Jazan region—the 600 MWac Samtah Solar PV IPP and the 600 MWac Darb Solar PV IPP—will further boost solar capacity. Finally, the 400 MWac Sufun Solar PV IPP in the Hail region will add to the mix. These projects are part of a competitive tendering process managed by SPPC, which oversees predevelopment, tendering, and offtaking of energy.

For more information about NREP, visit https://powersaudiarabia.com.sa.

Implications and Impact

The release of the RFQ for Round 6 signals Saudi Arabia’s continued commitment to expanding its renewable energy capacity, which is expected to attract significant foreign and domestic investment. The projects will create jobs, foster local industry, and enhance energy security. By diversifying its energy sources, the Kingdom also reduces carbon emissions, aligning with global climate goals. Moreover, the development of these projects will stimulate economic activity in the targeted regions, promoting balanced regional development.

Internationally, this move reinforces Saudi Arabia’s role as a responsible energy producer and a leader in the global energy transition. It also strengthens partnerships with countries and companies specializing in renewable technologies, further integrating the Kingdom into the global clean energy supply chain.

Vision 2030 Alignment

The Round 6 projects are a direct reflection of Vision 2030’s objective to create a thriving, sustainable economy. By increasing the share of renewable energy, Saudi Arabia is not only ensuring a cleaner future but also driving economic diversification, innovation, and technological advancement. This initiative underscores the Kingdom’s dedication to achieving its environmental targets and cementing its position as a global energy hub.

20 Questions

Q1. What is the total capacity of the Round 6 renewable energy projects?

A1. The combined capacity of Round 6 projects is 4,500 MW, comprising one wind project and four solar PV projects. This capacity will contribute significantly to Saudi Arabia’s renewable energy targets.

Q2. Which entity released the RFQ for Round 6?

A2. The Saudi Power Procurement Company (SPPC) released the request for qualification. SPPC is responsible for procuring energy from independent power producers under the National Renewable Energy Program.

Q3. What is the National Renewable Energy Program (NREP)?

A3. NREP is a program led by the Ministry of Energy to increase renewable energy’s share in Saudi Arabia’s electricity mix. It aims to achieve 50% renewable energy by 2030, supporting Vision 2030 goals.

Q4. Where is the Dawadmi Wind IPP located?

A4. The 1500 MWac Dawadmi Wind IPP is located in the Riyadh region. It is the largest project in Round 6 and will harness the region’s wind resources.

Q5. How many solar projects are included in Round 6?

A5. Round 6 includes four solar PV projects: Najran (1400 MWac), Samtah (600 MWac), Darb (600 MWac), and Sufun (400 MWac). Together, they add 3,000 MWac of solar capacity.

Q6. What is the capacity of the Najran Solar PV IPP?

A6. The Najran Solar PV IPP has a capacity of 1400 MWac. It will be located in the Najran region and is the second-largest project in Round 6.

Q7. Which regions will host the Round 6 projects?

A7. The projects are spread across Riyadh, Najran, Jazan, and Hail regions. This geographic diversity ensures optimal use of local renewable resources and promotes regional development.

Q8. What is SPPC’s role in the NREP?

A8. SPPC is responsible for predevelopment, tendering, and offtaking energy from renewable projects. It has awarded over 19 GW of capacity to date under NREP.

Q9. How much renewable energy capacity has SPPC awarded so far?

A9. SPPC has awarded over 19 GW of renewable energy capacity under NREP. This demonstrates the program’s success in attracting investment and advancing Saudi Arabia’s energy transition.

Q10. What is the target for renewable energy in Saudi Arabia by 2030?

A10. Saudi Arabia aims to supply 50% of its electricity from renewable sources by 2030. This target is part of the optimal energy mix strategy under Vision 2030.

Q11. When was the RFQ for Round 6 released?

A11. The RFQ was released on September 26, 2024. The announcement was made by SPPC and reported by the Saudi Press Agency.

Q12. What is the capacity of the Samtah and Darb Solar PV IPPs?

A12. Both the Samtah and Darb Solar PV IPPs have a capacity of 600 MWac each. They are located in the Jazan region and will contribute to the Kingdom’s solar energy portfolio.

Q13. Where is the Sufun Solar PV IPP located and what is its capacity?

A13. The Sufun Solar PV IPP is located in the Hail region and has a capacity of 400 MWac. It is the smallest project in Round 6 but still significant.

Q14. What benefits will the Round 6 projects bring to Saudi Arabia?

A14. The projects will increase renewable energy capacity, create jobs, attract investment, reduce emissions, and support economic diversification. They also enhance energy security and regional development.

Q15. How does Round 6 support Vision 2030?

A15. Round 6 directly supports Vision 2030 by advancing the renewable energy targets, promoting sustainability, and fostering economic growth through investments in clean energy infrastructure.

Q16. What is the significance of the wind project in Round 6?

A16. The 1500 MWac Dawadmi Wind IPP is the largest wind project in Round 6 and will diversify Saudi Arabia’s renewable energy mix, which has been historically dominated by solar.

Q17. Who leads and supervises the NREP?

A17. The Ministry of Energy leads and supervises the NREP. It sets the strategic direction and ensures alignment with national goals.

Q18. How can one find more information about NREP?

A18. More information about NREP is available at the official website: https://powersaudiarabia.com.sa. The site provides details on projects, tenders, and objectives.

Q19. What is the expected impact of Round 6 on the local economy?

A19. Round 6 is expected to stimulate local economies in the project regions through job creation, infrastructure development, and increased business activity, contributing to balanced regional growth.

Q20. What role does renewable energy play in Saudi Arabia’s future?

A20. Renewable energy is central to Saudi Arabia’s future energy mix, reducing reliance on fossil fuels, ensuring sustainability, and driving economic diversification in line with Vision 2030.

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