- H.E Khalid Al-Falih Announces Renewable Energy Project Development Office to Lead NREP Program
- Office to Report to Renewable Energy Steering Committee, Chaired by Minister
- SMBC, DLA Piper andFichtner Group Appointed as NREP Tender Advisory Team
Riyadh – Kingdom of Saudi Arabia, February 1, 2017 – The Ministry of Energy, Industry and Mineral Resources has today announced that the Kingdom’s first National Renewable Energy Program (NREP) request for qualification (RFQ) will be issued on February 20th 2017. The Ministry also announced that the request for proposals (RFP) for 700 megawatts (MW) of solar and wind power, would go live on April 17th.
The RFQ process is expected to close in July 2017, with the first round of projects due to be awarded in September 2017. The NREP targets 9.5 GW of renewable energy by 2023 in support of Vision 2030, with an interim target of 3.45 GW of renewable power capacity by 2020 under the National Transformation Program (NTP).
The sites selected for round one include Sakaka, in the Al Jouf Province where the 300 MW of solar will be developed, and Midyan, in the Tabuk Province, for the 400 MW wind project.
His Excellency also announced the development of a unit responsible for the delivery and execution of the NREP. The Renewable Energy Project Development Office (REPDO) will become a unit of the Ministry, and will drive the deployment of renewable energy across the Kingdom.
His Excellency Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources, said: “The official appointment of the Renewable Energy Project Development Office, mandated to deliver the National Renewable Energy Program represents an important step towards our sustainability and economic goals, accelerating our economic transformation process and securing our long-term prosperity.
He continued: “This dedicated team will assume overall responsibility for the execution and delivery of the program, starting with the launch of the request for qualifications process on February 20th, ensuring that as we pursue ambitious targets it adheres to global best practices in line with the Kingdom’s desire to create an attractive ecosystem for investors.”
“We have vast renewable energy resources, and by exploiting them we work towards our sustainable development goals and reinforce our position as the world’s most reliable supplier of energy, allowing us to accelerate economic transformation,” said H.E. Khalid Al-Falih.
The REPDO will report to a new renewable energy steering committee, chaired by the Minister; that will provide oversight over the NREP. The committee will bring together heads of the various Kingdom stakeholders involved in energy research, measurement, regulation and predevelopment including, King Abdullah City for Atomic and Renewable Energy (KACARE), Electricity and Cogeneration Regulatory Authority (ECRA), Saudi Aramco and the Saudi Electricity Company (SEC).
His Excellency, Dr. Mohamed Al-Jasser, Chairman Electricity and Co-Generation Regulatory Authority (ECRA), and member of the Renewable Energy Steering Committee, said: “We are delighted to play a role in facilitating the renewable energy program. Transitioning towards a more balanced energy mix forms the cornerstone of Vision 2030 and represents a core element of our economic future.”
The newly appointed Renewable Energy Project Development Office has officially appointed its NREP advisory team who will provide legal, financial and technical support to the tender process.
Japanese bank Sumitomo Mitsui Banking Corporation (SMBC) has been appointed as financial advisor and will provide overall management of the advisory function throughout the tender process. International law firm DLA Piper will provide legal counsel, while Fichtner Group will supply engineering and technical advisory services. Bravo Solutions are the e-procurement service provider.
In line with the National Transformation Program, the NREP will target the creation of thousands of new skilled jobs and the incubation of a new domestic renewable energy industry – from research and development, to manufacturing and engineering. NREP is a systematic and multi-phased roadmap to rapidly diversify domestic power supply, and position the Kingdom as an active member of the global renewable energy market place.
About the National Renewable Energy Program
Saudi Arabia’s National Renewable Energy Program (NREP) is a long-term, multifaceted renewable energy strategy designed to balance the domestic power mix in order to deliver long term economic stability and prosperity to the Kingdom, whilst working towards carbon reduction commitments.
The NREP is managed and executed by the Ministry of Energy, Industry and Mineral Resources (MEIM), directly supporting Saudi Arabia’s National Transformation Program (NTP) and Vision 2030. The Program will be phased and rolled out in a systematic and transparent manner to ensure that the Kingdom benefits from the cost-competitive nature of renewable energy.
The NREP aims to substantially increase the share of renewable energy in the total energy mix, targeting the generation of 3.45 gigawatts (GW) of renewable energy by 2020 under the National Transformation Program (NTP), and 9.5GW by 2023, towards Vision 2030.