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Saudi Arabia’s SPPC launches 4.5 GW renewables tender amid green energy push

The SPPC tender seeks to develop 4.5GW of new solar and wind energy projects in Saudi Arabia

Scatec is focusing on solar and battery storage as part of a strategic shift
Scatec is focusing on solar and battery storage as part of a strategic shift

The Saudi Power Procurement Company (SPPC), responsible for overseeing the tender and purchasing energy from these projects, has launched the request for qualification (RfQ) under the sixth round of the National Renewable Energy Programme (NREP).

The tender seeks to develop 4.5 gigawatts (GW) of solar and wind energy projects as part of Saudi Arabia’s ongoing efforts to accelerate its renewable energy transition.

It is part of the sixth round of renewable energy projects under the National Renewable Energy Program (NREP), which is overseen by the Ministry of Energy.

The tender covers four important solar projects and one wind project spread across various regions in the Kingdom, highlighting Saudi Arabia’s commitment to diversifying its energy mix.

The projects are expected to help the country achieve its ambitious renewable energy targets. The projects are as follows:

  • The [1500] MWac Dawadmi Wind IPP to be located in the Central province, KSA.
  • The [1400] MWac Najran Solar IPP to be located in the Southern province, KSA.
  • The [600] MWac Samtah Solar PV IPP to be located in Central province, KSA.
  • The [600] MWac Darab Solar PV IPP to be located in the Southern Province, KSA.
  • The [400] MWac Sufun Solar PV IPP to be located in the Central Province, KSA.

The Kingdom, under its Vision 2030 strategy, aims to produce 50% of its electricity from renewable energy sources by the end of the decade, significantly reducing its reliance on oil and gas for power generation.

To date, the SPPC has allocated 19 GW of renewable energy capacity through various rounds of tenders. At the beginning of this year, the company said it was planning to issue annual tenders for new renewable energy projects totaling 20 GW per year, as it moves toward a target of 100-130 GW of renewable energy capacity by 2030.

In a statement, the SPPC stressed the importance of the renewable energy projects in meeting the Kingdom’s growing energy demand while advancing its climate goals.

“These projects will not only support Saudi Arabia’s energy transition but also contribute to the global push for cleaner energy solutions,” the statement said.

This new tender follows a series of renewable energy milestones in Saudi Arabia. Earlier this year, the SPPC signed power purchase agreements (PPAs) for three major solar projects—Haden (2 GW), Muwayh (2 GW), and Al Khushaybi (1.5 GW)—as well as two wind projects with a combined capacity of 1.1 GW.

The agreements were notable for securing a world record low price for wind energy at $15.65 per megawatt-hour (MWh), underscoring Saudi Arabia’s increasing competitiveness in the renewables sector.

In 2022, Saudi Arabia inaugurated the Sakaka solar power plant, its first utility-scale solar project, with a capacity of 300 MW. Developed by ACWA Power, the Sakaka project marked the Kingdom’s entry into large-scale renewable energy development and signaled a major shift in its energy policy.

Saudi Arabia’s focus on renewable energy is a cornerstone of its broader strategy to transition to a low-carbon economy, as outlined in its Vision 2030 agenda.

The Kingdom has also committed to achieving net-zero carbon emissions by 2060, with Crown Prince Mohammed bin Salman reiterating the importance of green energy at global forums.

The tender comes at a critical time as the global energy transition accelerates and countries look for ways to reduce their carbon footprints.

The Kingdom’s National Renewable Energy Programme, which was launched in 2017, has been central to Saudi Arabia’s efforts to meet its climate targets while sustaining economic growth.

Industry analysts as well as observers expect the Kingdom’s renewable energy capacity to play a crucial role in shaping the future of energy in the region and beyond.

Baset Asaba

Baset Asaba is an accomplished media and communications expert with extensive experience in creating impactful content across diverse platforms throughout the Middle East and Africa. With a background...