- Saudi Arabia’s ACWA Power has emerged as the winner for the country’s tender for 300 MW of PV capacity
- It beat the other shortlisted contender, a consortium led by Marubeni Corp., to win the project for a tariff of 0.08782 SAR (2.34¢) per kWh
- It will now develop the project with an investment of 993.75 million SAR ($256 million)
- The company will sign a power purchase agreement with Saudi Power Procurement Company (SPPC) for a period of 25 years
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As could be expected from the recently released shortlist for the 300 MW PV tender in Saudi Arabia, the Renewable Energy Projects Development Office (REPDO) has finally awarded the capacity to local developer ACWA Power. The company won the project for a tariff of 0.08782 SAR (2.34¢) per kWh, beating the other shortlisted bidder, a consortium led by Marubeni Corp.
ACWA Power will now be developing this project in Al-Jouf for a total investment of 993.75 million SAR ($256 million). “We are very excited to have won this project, through such a rigorous transparent process at a new world record tariff, as it will set the foundation for a robust and competitive market for renewable energy in Saudi Arabia,” said ACWA Power President and CEO Paddy Padmanathan.
A power purchase agreement (PPA) will be signed between ACWA Power and Saudi Power Procurement Company (SPPC) for a period of 25 years. The winner will have to achieve financial closure within the current month.
REPDO had launched the tender last year and received a world-record low tariff bid of 1.79¢ per kWh from a consortium of Masdar and EDF (see Record-Low Solar Bid <2¢ For Saudi Tender). However, REPDO surprised many when it rejected the bid, and shortlisted the next two highest bidders, ACWA Power and the consortium led by Marubeni, for the 300 MW Sakaka Tender. The latter had offered a bid of 2.66¢ per kWh (see World’s Lowest Solar Bid Disqualified).
While REPDO gave no reason for rejecting the lowest bid, some industry experts believe it was due to Masdar not listing any banks and the requirement of having local financiers on board. Furthermore, it included bifacial solar panels in the project proposal, which allowed it to offer a record low tariff.