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Released October 10, 2014 | JOHANNESBURG
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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Johannesburg, South Africa)--Five solar-power facilities will be set up in Saudi Arabia by the end of 2015, under a government initiative to give additional renewable power supply a major boost. The plants will be developed by the King Abdullah City for Atomic and Renewable Energy (KACARE).
View Project Report - 300158823 300158975 300136936 300092957 300092930 300094016
State-owned Saudi Electricity Company requested that KACARE set up the five power sites at Qaisomah (Eastern Province), Rafha (Northern Borders), Wadi Al-Dawaser (Riyadh), Mahd Al-Dahab (Madinah) and Sharourah (Najran).
All the required approvals for the commencement of the projects have been received. Land allocations for the plants have been made, and KACARE now will begin receiving bids for construction of the projects, the Saudi Gazette reported.
At the launch of the initiative last year, the government said that $109 billion was to be invested in solar power to produce a capacity of 41 gigawatts (GW) by 2032. It was stated that project developers would be invited to bid on power purchase contracts (PPCs), and three tendering rounds would be held over the next two to three years.
"KACARE has conducted detailed studies for the integration of renewable power stations with the SEC network to ensure the continuity of power supply, and the experiment will be applied to other cities as needed by SEC," said one source.
Power purchase agreements (PPAs) are expected to be paid over 20 years, and eligible projects will have a minimum capacity of 5 megawatts (MW). The power plant must be brought online within two years of a PPA execution to be eligible. For the first procurement between 2,000 and 3,000 MW is expected, with an increase to between 3,000 and 4,000 MW for the second procurement.
A white paper covered local content contribution to the polycrystalline PV projects. This ranged from 100% for racking, wafers and inverters to 25% for balance-of-plant equipment. Most other elements in the projects' scope had 50% local content. As well as helping to fill the power gap, the solar build is expected to create 15 jobs for every MW of added capacity, and help to reduce the pressing problem of youth unemployment.
Saudi Basic Industries Corporation (SABIC) will act as the major technology provider for the projects.
A number of the proposed plants in the introductory rounds are in the region of Riyadh, the country's capital. These range from 100-MW PV plants (completion 2015/16), a 1,100-PV plant, a 900-MW concentrated solar power tower (completion 2018), and a 1,200-MW concentrated solar power tower (completion 2019).
For related information, see August 26, 2014, article - Saudi Arabia to Offer World's Lowest Solar Power Costs, and May 19, 2014, article - Saudi Arabia's Water, Power Demand Pushes Needed Investments to $213 Billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
View Project Report - 300158823 300158975 300136936 300092957 300092930 300094016
State-owned Saudi Electricity Company requested that KACARE set up the five power sites at Qaisomah (Eastern Province), Rafha (Northern Borders), Wadi Al-Dawaser (Riyadh), Mahd Al-Dahab (Madinah) and Sharourah (Najran).
All the required approvals for the commencement of the projects have been received. Land allocations for the plants have been made, and KACARE now will begin receiving bids for construction of the projects, the Saudi Gazette reported.
At the launch of the initiative last year, the government said that $109 billion was to be invested in solar power to produce a capacity of 41 gigawatts (GW) by 2032. It was stated that project developers would be invited to bid on power purchase contracts (PPCs), and three tendering rounds would be held over the next two to three years.
"KACARE has conducted detailed studies for the integration of renewable power stations with the SEC network to ensure the continuity of power supply, and the experiment will be applied to other cities as needed by SEC," said one source.
Power purchase agreements (PPAs) are expected to be paid over 20 years, and eligible projects will have a minimum capacity of 5 megawatts (MW). The power plant must be brought online within two years of a PPA execution to be eligible. For the first procurement between 2,000 and 3,000 MW is expected, with an increase to between 3,000 and 4,000 MW for the second procurement.
A white paper covered local content contribution to the polycrystalline PV projects. This ranged from 100% for racking, wafers and inverters to 25% for balance-of-plant equipment. Most other elements in the projects' scope had 50% local content. As well as helping to fill the power gap, the solar build is expected to create 15 jobs for every MW of added capacity, and help to reduce the pressing problem of youth unemployment.
Saudi Basic Industries Corporation (SABIC) will act as the major technology provider for the projects.
A number of the proposed plants in the introductory rounds are in the region of Riyadh, the country's capital. These range from 100-MW PV plants (completion 2015/16), a 1,100-PV plant, a 900-MW concentrated solar power tower (completion 2018), and a 1,200-MW concentrated solar power tower (completion 2019).
For related information, see August 26, 2014, article - Saudi Arabia to Offer World's Lowest Solar Power Costs, and May 19, 2014, article - Saudi Arabia's Water, Power Demand Pushes Needed Investments to $213 Billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
