Saudi Arabia on the way to tender renewable energy projects, requests companies to qualify

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The energy ministry announced on Sunday that Saudi Arabia will participate in the tender for the first round of projects in the field of renewable energy this year.

Requests to participate in the project with a capacity of 400 megawatts (MW) in the north of the kingdom will close on Aug. 10, and offers will be received from Aug. 29. Auction closes in January next year, the ministry's Renewable Energy Project Development Office (REPDO) said.

Earlier, the Ministry said that solar power plant Sakaka capacity of 300 MW and a wind project with a capacity of 400 MW in the Midyan were part of the first round of projects.

However, Dumate al-Jandal replaced Midyan, as still conducted preliminary development.

In April, Saudi Arabia launched a massive renewable program in Riyadh, announcing the beginning of the bidding process for the Sakaka project, which is expected to go online to 2018-2019. The head of the REPDO said the Sakaka project is estimated to cost around $300 million.

The winning participants will build, own and operate power plants in partnership with the government; the Project Dumat al-Jandal will be supported by a 20-year agreement to purchase electricity and Sakaka on a 25-year agreement.

The development of renewable energy is the key to displace high value oil it would rather export. It will also help the kingdom to boost local manufacturing and create jobs.

Saudi Arabia seeks to generate 9.5 gigawatts (GW) of electricity from renewable energy sources annually by 2023, with the participation of 60 projects. The initiative for renewable energy includes investments estimated between $30 billion and $50 billion.