| RENEWABLE ENERGY PROVES TO BE SAUDI’S INVESTMENT ALLURE |
Saudi Arabia is pushing ahead with its ambitious renewable energy programme in the new year.
In January, the Renewable Energy Project Development Office (REPDO) of Saudi Arabia’s Ministry of Energy, said it had issued a requestfor qualifications (RFQ) for the third round of the kingdom’s National Renewable Energy Program (NREP), which features four solar photovoltaic (PV) projects with a combined generation capacity of 1,200 megawatts (MW).
The third round will be divided into two categories. Category A targets smaller companies, and includes the Layla 80 MW solar PV and Wadi Al Dawaser 120 MW solar PV projects, while Category B features the larger Saad 300 MW solar PV and Ar Rass 700 MW solar PV projects.
Project in the third round must carry a minimum of 17% of local content to boost the prospects of domestic and local players in the country’s nascent renewable energy sector. The request for quote for the projects end on 6 February 2020.
QUEST FOR CLEAN ENERGY
REPDO has been rolling out renewable energy projects since 2017, when it launched the included Sakaka 300 MW solar PV project, which is now connected to the national electricity grid, and the Dumat Al Jandal 400 MW wind project, currently under construction. In 2019, REPDO launched the second round of the NREP, featuring six solar PV projects with a combined capacity of 1,470 MW.
“Saudi Arabia’s National Renewable Energy Program (NREP) is a long-term, multifaceted renewable energy programme designed to balance the domestic power mix, whilst implementing KSA’s Nationally Determined Contribution (NDC) to avoid carbon and other greenhouse gas emissions, directly supporting Saudi Arabia’s Vision 2030,” according to REPDO. “The National Renewable Energy Program aims to substantially increase the share of renewable energy in the power energy mix.”
Meanwhile, Saudi Electric Services Polytechnic (SESP) signed two agreements with Danish company Maersk, for the training in renewable energy and heavy equipment in the kingdom, as the company establishes a laboratory for this field in SESP's branches.
Like the rest of the world, the kingdom is looking to reduce its carbon footprint and generate sustainable energy, while at the same time utilising its crude oil and natural gas resources for exports to other countries.
“It is perfectly possible to generate sufficient cheap, reliable energy from renewable sources,” IRENA director-general Francesco La Camera said recently at the International Energy Forum in Riyadh. “Not only is it possible, but it is also our best option, as it would bring higher socio-economic benefits than business as usual, and it would allow us to effectively address climate change.”
MUTJADEDA
Last year, the Saudi Industrial Development Fund launched Mutjadeda, a programme designed to fund renewable energy component manufacturers and project developers with a package of incentives. The programme works on collaboration with related parties to maximise local content in this sector.
The programme offers financing on renewable energy component manufacturers with longer repayment period of up to 20 years, longer grace period of up to 36 months, financing of up to 75% of project cost and alignment with REPDO to meet the demand requirements.
For financing of independent renewable energy production projects, Mutjadeda offers a repayment period of up to 20 years and grace period of up to 36 months. For financing of renewable energy production projects for the industrial, commercial, and other sectors, the repayment period is 12 years with a 36-month grace period.
In another landmark move, Saudi Arabia Electricity Co. entered into a contract to install and commission 10 million smart meters to consumers across the country. The SAR 9.5 billion contract will ensure 3.5 million meters are purchased from local manufacturers and a third of the project’s value will be sourced from local content.
The project was awarded to a consortium of Etihad Etisalat Co. and Al- Fanar Construction for the central and eastern parts of the kingdom, while a branch of China Electric Power Equipment and Technology (SGCC) was awarded the project for the western and southern areas of the country.
Smart meters can help monitor and rein in power consumption more effectively.
Consumers will be able to see their usage and spend, as well as explore other features such as daily, weekly or monthly comparisons. It could also help consumers take simple steps to reduce their energy usage and conserve energy.
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