Saudi Arabia has started accepting bids for the first utility-scale wind farm in the Kingdom.
The $500m Dumat Al Jandal wind farm is located in the northern Al Jouf region and will power up to 70,000 Saudi households and is part of the country’s industrial diversification strategy.
The Dumat Al Jandal project is the second tender issued by the Ministry of Energy, Industry and Mineral Resources (MEIM) as a part of the National Renewable Energy Programme (NREP) under the King Salman Renewable Energy Initiative.
“The Kingdom’s first utility-scale wind project opens a new chapter in our journey towards a diversified energy mix. The development of a wind energy industry in Saudi Arabia is an important component of our wider industrial diversification strategy,” said His Excellency Khalid Al Falih, Minister of Energy, Industry and Mineral Resources.
Four bids have already been submitted by pre-approved consortiums. The Renewable Energy Project Development Office (REPDO) will evaluate the proposals and award the winning bid on 18 December. The awarded consortium will also receive a 20-year power purchase agreement with Saudi Power Procurement Company (SPPC).
As a part of the Vision 2030 and the National Transformation Program (NTP) the government aim to have renewable energy account for 4 percent of the Kingdom’s total energy production by 2020 and 10 percent by 2023, approximately 9.5 GW. The total investment in the project is expected to reach $16 billion.