- Category: Other Markets
25 Feb 2013
- Published on Monday, 25 February 2013 10:02
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Saudi Arabia has released a white paper laying out its roadmap for the competitive procurement process for their renewable energy program.
The King Abdullah City for Atomic and Renewable Energy or K.A. CARE was established to lead the shift to a more sustainable energy mix with the goal of seeing 54 gigawatts of renewable energy capacity by 2032.
The C.P.P. program is one of the tools designed to help diversify Saudi Arabia’s energy mix and meet its renewable power capacity target by reaching 23.9 GW by 2020 and 54.1 GW by 2032.
While K.A.CARE largely focuses on solar PV and C.S.P. technologies (41 GW by 2032), it also seeks to generate power from wind, geothermal and waste-to-energy facilities.
In the first two bidding rounds of C.P.P. following the introductory procurement round, implementing K.A.CARE specified that they want to add 2.4 gigawatts of solar photovoltaic capacity and 2.1 GW of concentrated solar power capacity.
According to the roadmap, initial contracts would be part of an introductory procurement round of 500 to 800 megawatts worth of renewable energy projects. Over the next two to three years, additional rounds will be conducted targeting a renewable energy capacity of up to 7 GW.
The first round of procurement is expected to be held during the first half of 2013, while subsequent rounds are set to be announced.
The C.P.P. will cover new renewable power plants with capacity of no less than 5 MW and expansion of existing renewable power plants that raise the capacity by no less than 5 MW.
These projects are expected to be paid for a period of 20 years, and developers can sell electricity produced to a new government entity that will then sell it to the national grid.
The Sustainable Energy Procurement Company, a separate independent government-guaranteed body, will be the one to supervise the procurement, and execution and management of the power purchase agreements.
For years, Saudi Arabia has been known as the world’s largest oil producer and exporter, pumping around 10.782 million barrels per day. Its economy is petroleum-based, in which oil accounts for 90 percent of the country’s export and about 75 percent government revenues.
Hydrocarbons such as oil will remain a key element in Saudi Arabia’s energy mix but renewable energy will play a significant role in matching its energy need, according to KACARE.
By 2032, the country’s energy mix will be consist of 60 GW hydrocarbons, 17.6 GW nuclear, 41 solar where 16 GW comes from P.V. and 25 GW from C.S.P., 1 GW geothermal, 9 GW wind and 3 GW waste-to-energy. Eighty five percent of the renewable energy inputs must be sourced locally in order to promote national economic growth, including industrial development, employment and business opportunities. – C. Dominguez