SPPC plans to re-tender two IPPs in Saudi Arabia
The Taiba and Qassim power projects will each be equipped with carbon capture and sequestration readiness mechanisms
The Saudi Power Procurement Company (SPPC) has said that it plans to re-tender two independent power projects in Saudi Arabia. The state-owned entity is responsible for planning and putting forward projects to generate electricity in the Kingdom.
In a statement, SPPC said that the projects – Taiba and Qassim IPP – will each have a 3.6GW capacity. It added that all previously qualified developers will automatically be included for the new projects, while other interested participants can submit their bids. The requests for proposals (RFPs) will be issued to qualified applicants on January 20, 2023, it noted.
The statement highlighted that both facilities will feature carbon capture and sequestration (CCS) readiness mechanisms, in alignment with KSA’s Saudi Green Initiative and its stated greenhouse gases (GHGs) Net Zero ambition by 2060. This will be achieved through the deployment of technologies for a circular carbon economy approach, it continued.
In early March 2022, Acwa Power and SPPC inked a deal to develop 700MW solar project.
The projects will introduce the developer’s ability to implement CCS or other potential solutions to address GHGs emissions when deemed feasible, allowing for greater participation of developers, EPCs, and Original Equipment Manufacturers (OEMs), and will drive further local content and value-added to the Kingdom, it explained.
As per the deal, SPPC will be re-tendering the two projects into four smaller combined cycle power projects of 1,800MW capacity, each with provision for CCS readiness.
The Saudi Power Procurement Company was fully nationalised in August 2022, by the Saudi Ministries of Finance and Energy, after they bought up shares in one of the firm’s subsidiaries. The Ministries said that the Kingdom’s government had bought up Saudi Electricity Company, which meant that SPPC is now wholly owned by the state.
In early June 2022, Acwa Power inked a PPA with SPPC for a new $107mn solar PV plant.
The move comes as part of the country’s plans to restructure its electricity sector and introduce financial and organisational reforms. SPPC will be responsible for planning and putting forward projects to generate the Kingdom’s required electric power.
It will also be responsible for concluding electric power purchase and wholesale agreements, developing energy trading markets and purchasing fuel for the company. Furthermore, the company will contribute to achieving the objectives of an optimal energy mix, displacement of liquid fuels and raising of the level of environmental compliance.
Finally, it will also encourage internal and external investments, increase the percentage of localisation, and ensure the security and reliability of supplies at lower costs.
In late September 2022, SPPC revealed plans for five renewable energy projects across Saudi Arabia.
