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Saudi Arabia Set to Build First Wind-Power Plant (largest in the MENA)

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Oil Giant Saudi Arabia Set to Build First Wind-Power Plant
By
Anthony Dipaola
22. juli 2019 14.21 CEST Updated on 23. juli 2019 09.11 CEST

EDF Renewables, Masdar arranged financing for 400MW project

Dumat Al Jandal plant is part of Saudi push to use less oil


Saudi Arabia, the world’s biggest oil exporter, is poised to start generating wind power within three years as part of an effort to harness renewable energy to cut local demand for fossil fuels.

The renewable energy units of Electricite de France SA and Abu Dhabi’s Mubadala Investment Co. completed arrangements with Saudi and international banks to finance the project, according to a statement from Masdar, as the Abu Dhabi business is known. Masdar didn’t identify the lenders.

EDF Renewables and Masdar won a contract in January to build the 400-megawatt Dumat Al Jandal facility, which is to begin producing electricity in the first quarter of 2022. The project will be the biggest wind-power plant in the Middle East when it begins producing, Masdar said.

Saudi Arabia is seeking to develop new industries to wean its economy off oil. Its sovereign wealth fund plans to invest in renewable energy facilities and factories to make components for solar and wind farms. The country wants to use more natural gas and renewable energy to free up roughly 600,000 barrels of crude that it currently burns each day to generate power.

The wind plant is to be built at Dumat Al Jandal city in northwestern Saudi Arabia, a region where state-owned Saudi Aramco installed a single wind turbine in January 2017.

The energy ministry has pre-qualified 60 companies to bid for 12 renewables projects it plans to tender this year, starting this month, with a goal of adding 3,000 megawatts of capacity.

https://www.bloomberg.com/news/arti...ials-separatists-take-military-camp-45-killed

Related news from 1 year ago:

Saudi Arabia’s 1st Wind Farm Receives Strikingly Low Bid Prices
July 27th, 2018 by Joshua S Hill



Saudi Arabia officials announced earlier this week that the country had received four bids for the proposed 400 megawatt (MW) Dumat al-Jandal onshore wind farm at prices that rival the lowest bids received anywhere in the world.



While predominantly known for its oil reserves, Saudi Arabia has nevertheless witnessed the world’s ongoing transition to low-carbon energy generation and the potential new markets it has opened up. The country has thus dug into its deep pockets to begin developing large-scale solar projects across the country, such as the 300 MW Skaka IPP PV solar project that is set to be developed by Saudi-based developer and operator ACWA Power, which won the contract in February of this year at a record-breaking tariff of 2.34¢ (USD) per kilowatt-hour.

It was also announced in March that Japanese multinational SoftBank would work with Saudi Arabia to build a seemingly improbable 200 gigawatt (GW) solar project — exceeding the total amount of solar currently installed in the entire world in 2017 by 30%! Whether or not the project comes to fruition or not, it’s hard to blame the country for not having enough renewable energy ambition — ambition driven by the country’s National Renewable Energy Program (NREP) which, according to Sohaib Malik, Market Analyst with Wood Mackenzie, “targets 9.5GW of renewable energy capacity by 2023.” Specifically, “In Phase 1, the county will award 3.5GW and 1.2GW of capacity for solar PV and wind, respectively.”

Solar won’t be Saudi Arabia’s only renewable energy play, however, as this week the country’s Renewable Energy Project Development Office (REPDO) and the Ministry of Energy, Industry and Mineral Resources (MEIM) announced that they had received four bids of between $21.30/MWh and $33.86/MWh for the 400MW Dumat al-Jandal project.

What is most striking about these bids, however, is just how low two of them are. France’s EDF Energies Nouvelles placed the lowest bid at only $21.30 per megawatt-hour (MWh), and French electric utility Engie placed a bid of only $23.62/MWh.

Bidding Company/Consortium Bid price ($/MWh)
EDF Renewables and Abu Dhabi Future Energy-Masdar $21.30/MWh
Engie and Saudi Services for Electro Mechanic Works $23.62/MWh
ACWA Power and Martifer Renewables $26.93/MWh
Enel Green Power and Al Babtain Contracting $33.86/MWh
For a country on its first onshore wind project, these bid prices are exceedingly low — comparable to some of the lowest prices we have seen anywhere in the world. For example, Mexico’s third long-term auction for renewables held in November of 2017 recorded a global record-low bid price for wind of $17.7/MWh and an average price of $20.57. That companies are bidding in the same ballpark in a new market like Saudi Arabia speaks volumes.

“Developers are bidding low price levels due to consistently reducing costs of both wind and PV technologies,” explained Sohaib Malik. “Further, Saudi Arabia offers a stable and mature financial market which helps developers mobilise low-cost capital. Likewise, these are projects for 300 to 400MW of capacity that offer significant cost benefit in the form of economies of scale.”

It’s worth noting, however, that EDF and Engie aren’t guaranteed preference just because they bid lowest. “REPDO said the bid opening results announced do not represent a ranking of bidders or a bidder’s compliance with RFP requirements of the project, nor do they constitute a determination by REPDO of the outcome of the bidding process,” Saudi Arabia’s MEIM said in a statement.

Regardless of who wins the right to build the Dumat al-Jandal project, this marks new ground for renewable energy in the Middle East region.

“The Kingdom’s first utility-scale wind project opens a new chapter in our journey towards a diversified energy mix,” said Khalid Al Falih, minister of energy, industry and mineral resources. “The $500 million Dumat Al Jandal wind farm in the northern Al Jouf region will generate enough power to supply up to 70,000 Saudi households as it connects to the northern electricity grid.”

https://cleantechnica.com/2018/07/27/saudi-arabias-1st-wind-farm-receives-strikingly-low-bid-prices/

Earlier this year:

UK Firms Seek Wind Power Partnerships in Saudi Arabia

Thursday, 21 March, 2019 - 11:45
3_1.jpg

Riyadh- Fatehelrahman Yousif


A delegation of 20 UK renewable energy companies are seeking means to transfer expertise and production technologies to contribute to producing 59 gigawatts of wind power in Saudi Arabia, in hope that partnerships would be forged to localize this industry in the coming years.

During the Saudi-British Forum on renewable energy held in Riyadh on Wednesday, the British delegation looked into the Saudi potentials in terms of natural resources that produce solar and wind energy.

The CEO of Saudi British Joint Business Council, Chris Hawkins, told Asharq Al-Awsat newspaper that the forum revealed great opportunities that will pave the way for partnerships in renewable energy generation and the transfer of relevant expertise and technology."

Hawkins noted that the British firms currently focus on contributing to giant projects launched lately by the kingdom, namely producing 59 gigawatts of wind power according to Saudi Vision 2030.

Meetings were held during the past three days with relevant official Saudi parties including ACWA Power, the General Investment Authority (SAGIA), the Renewable Energy Project Development Office (REPDO), SABIC, and the Council of Saudi Chambers, he added.

Saudi Arabia enjoys high competitiveness in the energy sector, Hawkins continued.

He stressed Britain’s support to Saudi projects and future programs in all its phases and fields. Further, trade exchange between the UK and Saudi Arabia amounts GBP10 billion, Hawkins added.

Nasser al-Mutawa, the co-chairman of the Saudi British Joint Business Council and head of Saudi-British Forum at the Council of Saudi Chambers, told the newspaper that this forum has provided the British party with rich and persuasive information.

The British delegation was introduced to the Saudi investment environment and regulations, he added.

https://aawsat.com/english/home/article/1644251/uk-firms-seek-wind-power-partnerships-saudi-arabia

WIND ENERGY IN SAUDI ARABIA: TSK WILL BUILD THE FIRST WIND FARM FOR 40 MILLION
July 8, 2019 reve

The wind power contract, for the Saudi company Repdo, was awarded to TSK by the consortium formed by EDF Renewables and Masdar.

1353/5000TSK will install the wind turbines of the first wind farm in Saudi Arabia and the largest in the Middle East, with a power of 400 megawatts.
The project was awarded to TSK for an amount of 40 million euros by a consortium comprising EDF Renewables and Masdar, based in Abu Dhabi (United Arab Emirates).

The wind farm, owned by Repdo (Renewable Energy Project Development Office), a society of the Saudi Ministry of Energy, Industry and Human Resources, will be built in Dymnat Al Jandal, in the region of Al Jouf, located in the northwest of the country, about 1,046 kilometers north of Riyadh, the capital.

The wind farm, which will employ a thousand people during its construction and put into operation, will generate equivalent energy to guarantee the supply to 70,000 homes and is part of a renewable energy development plan that the country’s authorities implemented in 2017

The new contract is the second consecutive one that TSK will undertake in Saudi Arabia, where the Asturian company is currently executing a sugar refinery in Yanbu. In other countries of the Middle East (Kuwait, Jordan, Dubai and Oman) engineering is carrying out different projects of power generation, industrial plants and handling of raw materials for a joint amount of more than 500 million euros.

https://www.evwind.es/2019/07/08/wi...uild-the-first-wind-farm-for-40-million/67927

2.5 years ago:

Commissioning of First Wind Turbine in Turaif
BY SAUDI ARAMCO NEWS / 18 JANUARY 2017
ar_commissioning-of-first-wind-turbine-in-turaif.jpg

Saudi Aramco and GE executives and local dignitaries and business leaders pose in front of the first wind energy turbine in Turaif, Saudi Arabia, Jan. 17, 2017.

Saudi Aramco today marked the commissioning of the Kingdom’s first wind energy turbine, providing electricity to its bulk plant facility in Turaif in northwestern Saudi Arabia.The project, developed in partnership with GE, marked a new milestone in Saudi Aramco’s plan towards realizing the 9.5 gigawatt (GW) national renewable energy target defined in Saudi Vision 2030.

The commissioning event of the wind energy station was attended by Abdulkarim Ghamdi, Saudi Aramco Executive Director for Power Systems, Anne McEntee, VP & CEO GE Onshore Wind – Renewables; Ruhan Temeltas, Regional Leader GE Renewables; Zaher Ibrahim, CEO GE Oil & Gas, Saudi Arabia, and a number of local dignitaries and business leaders.

For several years, Saudi Aramco has invested to develop high potential sites for wind energy in Saudi Arabia. Sites across the Kingdom have significant resource potential, and may generate some of the lowest cost electricity globally. Delivering new energy through renewables reduces the Kingdom’s greenhouse gas emissions and contributes to global climate action outlined in the Paris Climate Agreement.

Domestically, committing the Kingdom to renewable energy is part of the National Transformation Plan (NTP) and Vision 2030. Through NTP, the Kingdom is targeting 3.45GW of renewable energy by 2020, on the way to 9.5GW by 2023. The Ministry of Energy is leading the launch of the National Renewable Energy Program which will be phased and systemic in its pursuit of long-term goals where Saudi Aramco is a key stakeholder in this effort.

Abdulkarim Ghamdi, Saudi Aramco Executive Director for Power Systems said: “The commissioning of the first wind turbine is the start of something new in the Kingdom that Saudi Aramco is driving with our partners. Wind Turbine No. 1 in Turaif will fully meet the electricity needs for the bulk plant and even feed surplus electricity back into the national grid. Wind energy offers potential to provide new energy the Kingdom’s energy mix and enhance power generation efficiency, thus delivering on the core objectives of Vision 2030.”

Zaher Ibrahim, President & CEO, GE Oil and Gas Saudi Arabia said: “We see the installation of this GE wind turbine in Turaif as a great demonstration of the long partnership we have with Saudi Aramco. Today is a significant occasion marking an exciting new era for the Kingdom and one that we are very proud to be part of. We look forward to continuing to work with our partners in the Kingdom towards the renewables goals of Saudi Vision 2030.”

The Saudi Aramco-GE wind turbine demonstration project will power Saudi Aramco’s facility in Turaif, providing electricity directly to the bulk plant. One wind turbine creates enough power to supply 250 homes, can displace 19,000 barrels of oil equivalent, and generate 2.75MW, thereby reducing demand for electricity from the national grid. The wind turbine is connected to Turaif Bulk Plant’s electrical distribution system to help it reduce the amount of power purchased from the Saudi Electricity Company and to reduce the diesel currently consumed to supply power at the plant.

The GE 2.75-120 wind turbine has been delivered with a desert protection package specifically designed for the Kingdom’s ‘hot & harsh’ conditions. The tower stands 85 meters high, capturing energy by blades 120 meters in diameter. The turbine’s rotor tips reach 145 meters from the ground. The turbine blades are constructed from lightweight composite materials, resembling large aerodynamic glider wings. The wind turbine project was developed by specialists from Saudi Aramco’s Power Systems, with GE selected to design, supply, and construct the demonstration project.

https://www.aramcoexpats.com/articles/commissioning-of-first-wind-turbine-in-turaif/

Great news. Combined with the ambitious solar plans (largest solar park in the world to be built), the 20 + future nuclear power plants, the existing and future dams etc., we can hopefully use oil and natural gas solely for export and not domestic consumption as today. For the benefits of the environment and from an economic viewpoint.

Needless to say that there are no other country in the region that has as much potential for renewable solar and wind energy as KSA due to size, geography, economy and climate.
 
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Problem with wind. You must of equipment for 600mw then you have turn of 200mw of it for backup ad just get 400mw out of it and it seems nobody looking into finding a solution for that.
 
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Problem with wind. You must of equipment for 600mw then you have turn of 200mw of it for backup ad just get 400mw out of it and it seems nobody looking into finding a solution for that.

You can pump air instead of directly creating e energy.. For example create air pressure and pump it in old salt mines than let the air off when needed to run a turbine and create energy yes you have losses but you can run them 100% until your e energy store is fully loaded

Or you need to create hydrogen and run it 100% all time
 
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Saudi Arabia to 'lead Middle Eastern wind power'

Saudi Arabia is due to become the Middle East's largest wind power market in the next decade, according to new analysis, with the kingdom accounting for nearly half of new additions in the region by 2028.

SaudiArabiafirstturbineGEaramco-20190408100638723.jpg

Saudi Arabia's first wind turbine -- a GE Renewable Energy 2.75-120 installed for oil company Aramco

Developers will add 6.2GW of new wind capacity in Saudi Arabia between 2019 and 2028 — 46% of the region’s 13.5GW total capacity additions in this period — according to Wood Mackenzie Power & Renewables.

However, the country will fall short of the revised 16GW target under its Vision 2030 program — a package of economic, energy and public sector goals for Saudi Arabia to achieve by the end of the next decade.

Elsewhere, against a backdrop of regional volatility, Wood Mackenzie expects an extra 2GW of new wind power installations online in the Middle East by 2021, 6GW by 2024, and 13.5GW by 2028.

Saudi Arabia’s Renewable Energy Project Development Office (Repdo) is due to award 850MW of wind capacity this year, with the projects expected online between 2021 and 2022.

It awarded the 400MW Dumat Al Jandal wind farm — due to be the country’s first commercial-scale project — to a consortium of French energy firm EDF and Middle Eastern developer Masdar last year, and announced the results this January.

That same month, the government raised its 2030 wind power target. It had initially aimedfor 9.5GW of wind and solar PV capacity by this date, but revised its ambition for these technologies to 16GW and 40GW respectively.

Public Investment Fund (PIF), the Saudi sovereign wealth fund, will finance 70% of this new capacity, with Repdo supporting the remainder.

Sohaib Malik, a senior analyst at Wood Mackenzie, said: "A central concern is the PIF’s lack of track record in the renewables sector and its limited in-house sectoral expertise.

"Repdo, on the other hand, completed two renewables requests for proposals after pre-developing the sites."

As well as the wind power tender won by EDF and Masdar, Repdo also awarded a 300MW solar PV project to Middle Eastern developer ACWA Power.

Regional forecast
Elsewhere, Wood Mackenzie expects volatility in the Middle Eastern wind market to remain.

Following strong positive growth in 2018, project development is due to slow in Jordan (185MW last year) and Iran (63MW) this year, the analysts forecast.

Lebanon is expected to award licences for between 200MW and 400MW of projects this year, adding to the 202MW it has already permitted.

The region is due to add 2GW of new wind power capacity between 2019 and 2021, Wood Mackenzie forecasted, up from a combined total of 675MW today.

Sunny outlook
Meanwhile, the outlook for solar PV is much more positive, reflecting the region’s "world class solar energy resources", Malik added.

While 6GW of wind power capacity is expected to be added by 2024, 53GW of new solar PV is due online by this date.

Wind power developers will increasingly struggle to compete against solar PV on price in low-wind markets such as Bahrain, Qatar and the United Arab Emirates, Malik said.

https://www.windpowermonthly.com/article/1581315/saudi-arabia-lead-middle-eastern-wind-power

Saudi Arabia to become largest Middle East wind power market by early 2020s

08 April 2019

Saudi Arabia will become a regional heavyweight in wind power by the early 2020s, according to new research by Wood Mackenzie Power & Renewables.

According to the report 'Middle East Wind Power Market Outlook, 2019-2028’, developers will build 6.2GW of wind capacity – 46% of the region’s total wind capacity addition – between 2019 and 2028.

Commenting on the findings, Sohaib Malik, Wood Mackenzie Power & Renewables Senior Analyst, said: "The integration of renewables in Vision 2030’s objectives underlines strong political commitment within Saudi Arabia. The level of Saudi ambition for wind and solar PV varies significantly, despite the cost parity between both technologies during the first round of tenders in 2018.

"The 300MW Sakaka PV project was awarded to ACWA Power at 23.4 USD/MWh and the 400MW Dumat Al Jandal wind project at 21.3 US$/MWh to EDF/Masdar. Despite offering comparable prices and more rigorous industrial development opportunities, the wind power capacity target is set at 16GW by 2030 and solar PV at 40GW, indicating the government’s preference for the latter. Moving forward, the Renewable Energy Project Development Office (REPDO) will award 850MW of wind capacity in 2019, which is expected to be commissioned in 2021-2022, and increase the local content requirement in future tendering rounds."

Saudi Arabia to miss 2030 renewable energy objectives

Despite growth projections and imminent regional leadership, Saudi Arabia will fall short of its current 2030 renewables target.

"In January 2019, the Saudi government revised its renewable energy targets upward resulting in enhanced visibility through 2030. It earmarked 70% of target renewables capacity for the Public Investment Fund (PIF), the Saudi sovereign wealth fund, while the remaining capacity is to be awarded through REPDO. The new mechanism highlights concerns that will define the future of Saudi Arabia’s wind market.

"A central concern is the PIF’s lack of track record in the renewables sector and its limited in-house sectoral expertise. REPDO, on the other hand, completed two renewables request for proposals after pre-developing the sites. PIF is estimated to have $230bn of assets – targeted to reach $2trillion under Vision 2030 – driven by investments in a variety of sectors ranging from electric vehicles to public infrastructure.

“There is little doubt about the Fund’s financial muscle, however its past investment strategy focused on established firms in traditional industries. Aspirations to develop a value chain for wind and PV technologies locally is a different ball game and requires the PIF to acquire new capabilities for effective oversight of these ventures,” said Mr. Malik.

Volatility in Middle East wind market to remain

Regional volatility is expected to remain. Strong positive growth, driven by Jordan and Iran, in 2018 is expected to reverse in 2019. However, Wood Mackenzie Power & Renewables sees regional demand returning to steady growth post-2020.

“In 2018, developers added 185MW and 63MW of wind capacity in Jordan and Iran, respectively, compared to 53MW of capacity across the entire region in 2017. The completion of the 89MW Al Fujeij and the 86MW Al Rajef projects in 2018 indicates that Jordan has 375MW of the region’s operational 675 MW wind capacity. Iran followed with 278MW of installed capacity at the end of 2018. A slowdown in 2019 is expected, as project development activity softens in Iran. Additionally, delays in awarding the 400MW Dumat Al Jandal project in Saudi Arabia will limit annual capacity additions to 184MW.

“A maturing project pipeline within the region supports the 2020-2021 outlook. Saudi Arabian demand serves as the foundation for regional demand. Regional demand diversification is also occurring, with Lebanon set to add 200-400MW to its existing permitted capacity pipeline of 202MW in 2019. These developments pave the way for the addition of 2GW of wind capacity between 2019 and 2021,” added Mr. Malik.

Solar PV has strong prospects in the Middle East

The outlook for solar PV in the Middle East, when compared to wind, is much more positive – boasting an ideal environment for development.

“Compared to only 6GW of wind power capacity, developers will add 53GW of PV capacity through 2024. Solar PV has become a natural choice for many countries in the region, which is endowed with world class solar energy resources. The increased focus on solar energy is demonstrated by ambitious PV targets across the region.

“As the countries with stable macroeconomic outlooks began auctioning larger projects (Kuwait, Saudi Arabia and UAE), developers offered some of the world’s lowest solar PV tariffs. As such, it will become increasingly difficult for wind to compete with PV in low wind countries including Bahrain, Qatar and the United Arab Emirates,” said Mr. Malik.

https://www.woodmac.com/press-relea...middle-east-wind-power-market-by-early-2020s/

SAUDI ARABIA IS UNLOCKING THE POTENTIAL OF WIND ENERGY

28 October 2018




Saudi Arabia is undergoing a significant transition to low-carbon energy generation. The Kingdom, guided by objectives set out in Vision 2030, is undertaking ambitious plans to generate 9,500 MW from renewable sources by 2023.

The country is already developing large-scale renewable energy projects, such as the 300MW Sakaka IPP PV solar project, which set a record-breaking tariff of 2.34c per kilowatt-hour. While solar has been grabbing the headlines, wind energy is rapidly proving to be a cost competitive solution to energize the kingdom too.

In 2018, Saudi Arabia received bids for the first wind-power project tendered to international companies. The bids submitted were striking, comparable to the lowest tariffs seen around the world.



Cost of supply and consumption profile driving renewables

Saudi Arabia is rapidly moving to value based and efficient resource utilization. By adopting a mix of energy sources to meet demand, the Kingdom is optimizing resources to provide energy at low cost.



wind-energy-1-956847.png




Wind potential in Saudi Arabia

Saudi Arabia the potential to produce more than 200GW of on shore wind energy with an average capacity factor of 35.2 percent, higher than most countries paving the way in wind energy generation including the US (33.9 percent), UK (27.8 percent), Denmark (28.4 percent) and Germany (19%).



wind-energy-2-109346.png




Areas in the Kingdom including Aqaba, Jahid, Taif and Yadamah have high wind speeds and promising capacity factors to make wind energy projects a reality.



wind-energy-3-904550.png




Saudi Arabia’s National Renewable Energy Programme has been the driving force to achieve the country’s clean energy ambitions. Through a structured and competitive procurement process, the private sector is now involved in delivering renewable energy at low cost. To date, REPDO has tendered two projects with a total capacity of 700 MW.

By 2025 the Kingdom aims to produce 10GW of wind energy, creating more than 7,500 jobs and contributing more than 15 billion USD to Saudi Arabia’s Gross Domestic Product. The shift toward renewables is also accompanied by a push to diversify the economy from oil and gas, feed internal demand, and look at exporting renewable energy in the long-run.

https://www.acwapower.com/news/saudi-arabia-is-unlocking-the-potential-of-wind-energy/
 
.
Saudi Arabia to 'lead Middle Eastern wind power'

Saudi Arabia is due to become the Middle East's largest wind power market in the next decade, according to new analysis, with the kingdom accounting for nearly half of new additions in the region by 2028.

SaudiArabiafirstturbineGEaramco-20190408100638723.jpg

Saudi Arabia's first wind turbine -- a GE Renewable Energy 2.75-120 installed for oil company Aramco

Developers will add 6.2GW of new wind capacity in Saudi Arabia between 2019 and 2028 — 46% of the region’s 13.5GW total capacity additions in this period — according to Wood Mackenzie Power & Renewables.

However, the country will fall short of the revised 16GW target under its Vision 2030 program — a package of economic, energy and public sector goals for Saudi Arabia to achieve by the end of the next decade.

Elsewhere, against a backdrop of regional volatility, Wood Mackenzie expects an extra 2GW of new wind power installations online in the Middle East by 2021, 6GW by 2024, and 13.5GW by 2028.

Saudi Arabia’s Renewable Energy Project Development Office (Repdo) is due to award 850MW of wind capacity this year, with the projects expected online between 2021 and 2022.

It awarded the 400MW Dumat Al Jandal wind farm — due to be the country’s first commercial-scale project — to a consortium of French energy firm EDF and Middle Eastern developer Masdar last year, and announced the results this January.

That same month, the government raised its 2030 wind power target. It had initially aimedfor 9.5GW of wind and solar PV capacity by this date, but revised its ambition for these technologies to 16GW and 40GW respectively.

Public Investment Fund (PIF), the Saudi sovereign wealth fund, will finance 70% of this new capacity, with Repdo supporting the remainder.

Sohaib Malik, a senior analyst at Wood Mackenzie, said: "A central concern is the PIF’s lack of track record in the renewables sector and its limited in-house sectoral expertise.

"Repdo, on the other hand, completed two renewables requests for proposals after pre-developing the sites."

As well as the wind power tender won by EDF and Masdar, Repdo also awarded a 300MW solar PV project to Middle Eastern developer ACWA Power.

Regional forecast
Elsewhere, Wood Mackenzie expects volatility in the Middle Eastern wind market to remain.

Following strong positive growth in 2018, project development is due to slow in Jordan (185MW last year) and Iran (63MW) this year, the analysts forecast.

Lebanon is expected to award licences for between 200MW and 400MW of projects this year, adding to the 202MW it has already permitted.

The region is due to add 2GW of new wind power capacity between 2019 and 2021, Wood Mackenzie forecasted, up from a combined total of 675MW today.

Sunny outlook
Meanwhile, the outlook for solar PV is much more positive, reflecting the region’s "world class solar energy resources", Malik added.

While 6GW of wind power capacity is expected to be added by 2024, 53GW of new solar PV is due online by this date.

Wind power developers will increasingly struggle to compete against solar PV on price in low-wind markets such as Bahrain, Qatar and the United Arab Emirates, Malik said.

https://www.windpowermonthly.com/article/1581315/saudi-arabia-lead-middle-eastern-wind-power

Saudi Arabia to become largest Middle East wind power market by early 2020s

08 April 2019

Saudi Arabia will become a regional heavyweight in wind power by the early 2020s, according to new research by Wood Mackenzie Power & Renewables.

According to the report 'Middle East Wind Power Market Outlook, 2019-2028’, developers will build 6.2GW of wind capacity – 46% of the region’s total wind capacity addition – between 2019 and 2028.

Commenting on the findings, Sohaib Malik, Wood Mackenzie Power & Renewables Senior Analyst, said: "The integration of renewables in Vision 2030’s objectives underlines strong political commitment within Saudi Arabia. The level of Saudi ambition for wind and solar PV varies significantly, despite the cost parity between both technologies during the first round of tenders in 2018.

"The 300MW Sakaka PV project was awarded to ACWA Power at 23.4 USD/MWh and the 400MW Dumat Al Jandal wind project at 21.3 US$/MWh to EDF/Masdar. Despite offering comparable prices and more rigorous industrial development opportunities, the wind power capacity target is set at 16GW by 2030 and solar PV at 40GW, indicating the government’s preference for the latter. Moving forward, the Renewable Energy Project Development Office (REPDO) will award 850MW of wind capacity in 2019, which is expected to be commissioned in 2021-2022, and increase the local content requirement in future tendering rounds."

Saudi Arabia to miss 2030 renewable energy objectives

Despite growth projections and imminent regional leadership, Saudi Arabia will fall short of its current 2030 renewables target.

"In January 2019, the Saudi government revised its renewable energy targets upward resulting in enhanced visibility through 2030. It earmarked 70% of target renewables capacity for the Public Investment Fund (PIF), the Saudi sovereign wealth fund, while the remaining capacity is to be awarded through REPDO. The new mechanism highlights concerns that will define the future of Saudi Arabia’s wind market.

"A central concern is the PIF’s lack of track record in the renewables sector and its limited in-house sectoral expertise. REPDO, on the other hand, completed two renewables request for proposals after pre-developing the sites. PIF is estimated to have $230bn of assets – targeted to reach $2trillion under Vision 2030 – driven by investments in a variety of sectors ranging from electric vehicles to public infrastructure.

“There is little doubt about the Fund’s financial muscle, however its past investment strategy focused on established firms in traditional industries. Aspirations to develop a value chain for wind and PV technologies locally is a different ball game and requires the PIF to acquire new capabilities for effective oversight of these ventures,” said Mr. Malik.

Volatility in Middle East wind market to remain

Regional volatility is expected to remain. Strong positive growth, driven by Jordan and Iran, in 2018 is expected to reverse in 2019. However, Wood Mackenzie Power & Renewables sees regional demand returning to steady growth post-2020.

“In 2018, developers added 185MW and 63MW of wind capacity in Jordan and Iran, respectively, compared to 53MW of capacity across the entire region in 2017. The completion of the 89MW Al Fujeij and the 86MW Al Rajef projects in 2018 indicates that Jordan has 375MW of the region’s operational 675 MW wind capacity. Iran followed with 278MW of installed capacity at the end of 2018. A slowdown in 2019 is expected, as project development activity softens in Iran. Additionally, delays in awarding the 400MW Dumat Al Jandal project in Saudi Arabia will limit annual capacity additions to 184MW.

“A maturing project pipeline within the region supports the 2020-2021 outlook. Saudi Arabian demand serves as the foundation for regional demand. Regional demand diversification is also occurring, with Lebanon set to add 200-400MW to its existing permitted capacity pipeline of 202MW in 2019. These developments pave the way for the addition of 2GW of wind capacity between 2019 and 2021,” added Mr. Malik.

Solar PV has strong prospects in the Middle East

The outlook for solar PV in the Middle East, when compared to wind, is much more positive – boasting an ideal environment for development.

“Compared to only 6GW of wind power capacity, developers will add 53GW of PV capacity through 2024. Solar PV has become a natural choice for many countries in the region, which is endowed with world class solar energy resources. The increased focus on solar energy is demonstrated by ambitious PV targets across the region.

“As the countries with stable macroeconomic outlooks began auctioning larger projects (Kuwait, Saudi Arabia and UAE), developers offered some of the world’s lowest solar PV tariffs. As such, it will become increasingly difficult for wind to compete with PV in low wind countries including Bahrain, Qatar and the United Arab Emirates,” said Mr. Malik.

https://www.woodmac.com/press-relea...middle-east-wind-power-market-by-early-2020s/

SAUDI ARABIA IS UNLOCKING THE POTENTIAL OF WIND ENERGY

28 October 2018




Saudi Arabia is undergoing a significant transition to low-carbon energy generation. The Kingdom, guided by objectives set out in Vision 2030, is undertaking ambitious plans to generate 9,500 MW from renewable sources by 2023.

The country is already developing large-scale renewable energy projects, such as the 300MW Sakaka IPP PV solar project, which set a record-breaking tariff of 2.34c per kilowatt-hour. While solar has been grabbing the headlines, wind energy is rapidly proving to be a cost competitive solution to energize the kingdom too.

In 2018, Saudi Arabia received bids for the first wind-power project tendered to international companies. The bids submitted were striking, comparable to the lowest tariffs seen around the world.



Cost of supply and consumption profile driving renewables

Saudi Arabia is rapidly moving to value based and efficient resource utilization. By adopting a mix of energy sources to meet demand, the Kingdom is optimizing resources to provide energy at low cost.



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Wind potential in Saudi Arabia

Saudi Arabia the potential to produce more than 200GW of on shore wind energy with an average capacity factor of 35.2 percent, higher than most countries paving the way in wind energy generation including the US (33.9 percent), UK (27.8 percent), Denmark (28.4 percent) and Germany (19%).



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Areas in the Kingdom including Aqaba, Jahid, Taif and Yadamah have high wind speeds and promising capacity factors to make wind energy projects a reality.



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Saudi Arabia’s National Renewable Energy Programme has been the driving force to achieve the country’s clean energy ambitions. Through a structured and competitive procurement process, the private sector is now involved in delivering renewable energy at low cost. To date, REPDO has tendered two projects with a total capacity of 700 MW.

By 2025 the Kingdom aims to produce 10GW of wind energy, creating more than 7,500 jobs and contributing more than 15 billion USD to Saudi Arabia’s Gross Domestic Product. The shift toward renewables is also accompanied by a push to diversify the economy from oil and gas, feed internal demand, and look at exporting renewable energy in the long-run.

https://www.acwapower.com/news/saudi-arabia-is-unlocking-the-potential-of-wind-energy/
all fine, but where are the windy places there? Here in the kalahari - there is hardly any wind except during dust storms. Same in the sahara and i expect also in KSA; may be there are some niche locations. Best is solar all the way in their case.
 
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all fine, but where are the windy places there? Here in the kalahari - there is hardly any wind except during dust storms. Same in the sahara and i expect also in KSA; may be there are some niche locations. Best is solar all the way in their case.

If you had read the articles posted which you quoted, you would not be asking that question. There are plenty of windy areas in KSA but obviously solar will be the main renewable energy source in KSA.

The Kalahari is some 10.000 km away from KSA and likewise the Sahara is far away. Not comparable.








See this thread below about solar energy and renewable energy in KSA.

https://defence.pk/pdf/threads/ksa-taps-the-sun-to-meet-a-third-of-its-energy-needs.310345/page-10
 
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If you had read the articles posted which you quoted, you would not be asking that question. There are plenty of windy areas in KSA but obviously solar will be the main renewable energy source in KSA.

The Kalahari is some 10.000 km away from KSA and likewise the Sahara is far away. Not comparable.








See this thread below about solar energy and renewable energy in KSA.

https://defence.pk/pdf/threads/ksa-taps-the-sun-to-meet-a-third-of-its-energy-needs.310345/page-10
Thank you. You dont need to be rude in your reply.
 
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Thank you. You dont need to be rude in your reply.

How am I rude? I was just surprised by your reply as you had quoted the articles that I posted which openly wrote about the great potential for wind power in KSA. Rest was doing you a favor as well by answering your question in a serious manner. Even a link to a much more detailed thread.

Anyway no harm done from my part and let us return to the topic of the thread.
 
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@ArabianEmpires&Caliphates I was a on a business trip to Turaif... man i was surprised with the strong winds.

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BTW Turaif is located some 1000 meters above sea level and that area of KSA is very "wild". Huge open landmasses. Geographically it sits in a place where wind formations from the West (Mediterranean) mets those from the north, east and southwest.
 
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Saudi Arabia wind farm claims world record low energy cost

Joshua S Hill 13 August 2019

Saudi Arabia’s 400MW Dumat Al Jandal onshore wind farm has announced what it says is a world record-low onshore wind levellised cost of electricity (LCOE) of 1.99 US cents per kilowatt-hour (kWh).

The Dumat Al Jandal onshore wind farm – set to be located more than 800kms north of Riyadh in the Al Jouf region of north-western Saudi Arabia – will be the country’s first wind project and the largest in the Middle East.

The developing consortium – led by French renewable energy group EDF Renewables and renewable energy developer Masdar, a subsidiary of Mubadala Development Company – was awarded the project in January at an already-impressive low price of 2.1 cents/kWh, a record for the Middle East and North Africa region.

It was not until late-July, however, that the developing-consortium completed the financing for the project and announced financial close, during which time the project had made a 6.5% improvement on LCoE, bringing it down from 2.13 US cents/kWh to what the developers are now describing as a world-record 1.99 cents/kWh.

“We are delighted to take part in the first wind project in the country, which is set to be the most powerful wind farm in the Middle East,” said Bruno Bensasson, EDF Group Senior Executive President responsible for Renewable Energies, and Chairman and CEO of EDF Renewables.

“This new step reflects the quality of our partnership with Masdar, which has enabled us to jointly submit the most competitive bid. Wind power is now representing a renewable and economical solution in the energy mix.

“This new project demonstrates our ambitions in the country and represents another step forward under the EDF Group’s Cap 2030 strategy, which aims to double its renewable energy capacity by 2030 – both in France and worldwide – to 50 GW.”

Construction of the project is expected to begin shortly, with commercial operations due for start in the first quarter of 2022.

Vestas Wind Systems A/S has already been contracted as the project’s wind turbine technology provider and will be responsible for engineering, procurement, and construction (EPC). TSK will be responsible for the balance of plant (BOP), while CG Holdings will provide the substations and high-voltage solutions.

Further, the project is expected to create 800 jobs during the construction phase of the project and another 150 jobs during operation. Ultimately, the 400 MW wind project will supply electricity enough for the equivalent of 70,000 average Saudi homes.

“The award of Saudi Arabia’s first and the Middle East’s largest wind farm during Abu Dhabi Sustainability Week in January was a momentous occasion for our company and our partners,” crowed Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar.

“It also illustrated the depth of Saudi Arabia’s commitment to realise its bold strategy to substantially increase the contribution of renewables in its total energy mix to 27.3GW by 2024, from wind as well as solar energy.

Tracking the world’s ever-increasing number of renewable energy projects vying for “cheapest” is, in and of itself, a full-time job, and can come with a number of risks in identifying the validity of all the various claims.

The International Renewable Energy Agency (IRENA) published its figures for average renewable power generation costs for 2018 in late-May, which showed that the “global weighted-average LCoE of onshore wind projects commissioned in 2018” fell 13% to 5.6 cents/kWh.

And while there have been the occasional project commissioned with an LCoE of between 3 cents/kWh and 4 cents/kWh, it would appear that, as of writing, the Dumat Al Jandal project does indeed have the lowest LCoE for onshore wind.

https://reneweconomy.com.au/saudi-arabia-wind-farm-claims-world-record-low-energy-cost-99966/
 
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I wonder how many wind farms one could built in the mighty Rub' al-Khali? Sand dunes there can almost become 500 meter tall so that might be a challenge but that is only in certain areas of it. Same with solar panels. This is a massive area (home to a huge underground water reserve as well) that is mostly completely undiscovered other than some existing oil fields.

 
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Saudi Arabia launches $28 billion renewable energy funding initiative



Saudi Arabia has commenced a renewable energy development programme offering loans for clean energy projects and the manufacturers of renewable energy components, according to a report by Reuters.

The $28 billion Saudi Industrial Development Fund’s Mtujadeda programme is expected to help the emirate move from its dependence on crude oil, towards other diversified energy sources.

Saudi Arabia has traditionally relied on crude oil to fuel it’s electricity needs but wants to include more natural gas and other clean energy alternatives.

The programme opened for applications on Sunday, and will offer loans as high as 1.2 billion riyals, depending on the applicant company’s ownership status, and will target independent power production projects.

The programmes will also support firms in other sectors in the region that want to start using renewable energy.

“Whether you’re in manufacturing, agriculture or retail, if you want to deploy renewable energy, we will finance it,” said Ibrahim Almojel, the fund’s director general. "For renewables to be adopted in the kingdom, we need to support it.”

“Our objective is really to find new sources of energy to be less dependent on oil and to enable the manufacturing sector to continue its progress,” said Ahmed AlGwaiz, the industrial fund’s vice president of risk management, adding that the loans will be available for Saudi or foreign-owned companies. “We treat all clients, as long as they’re in Saudi Arabia, the same.”

The fund has already entered into dialogue with “large retailers and large agriculture producers” interested in using renewable energy, according to Almojel.

The fund, which was started in 1979, is being reworked by Crown Prince Mohammed bin Salman, to suit his plan for life after oil, dubbed Vision 2030, and was also recently expanded to allow for the financing of energy, logistics and mining projects.

https://www.smart-energy.com/indust...-billion-renewable-energy-funding-initiative/
 
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30 SEPTEMBER 2019

COMMENT
Clean energy steals the limelight at World Energy Congress

With an estimated $100bn-worth of renewables projects under study, design and in execution across the region, the policy momentum behind energy transformation is now being converted into new, potentially lucrative business opportunities across the Middle East and Africa.

Reducing carbon dioxide emissions and conserving hydrocarbons reserves are key factors shaping energy policy in the Middle East and North Africa (Mena).

But it is the more immediate combination of lower oil prices and the fall in the cost of renewable energy technologies that have seen every country in the region announce ambitious clean energy targets.

Clean energy, which includes renewables such as solar and wind power, as well as alternative fuels including waste-to-energy and nuclear, accounts for only a small proportion of electricity generation in the Mena region today.

Change is coming
According to the International Renewable Energy Agency (Irena), installed solar and wind capacity across the Mena region reached respectively 2,350MW and 434MW in 2017, up from just 91MW and 104MW in 2010.

And with an estimated $100bn-worth of renewables projects under study, design and in-execution across the region, the policy momentum behind energy transformation is now being converted into new, potentially lucrative business opportunities in the region.

Saudi shake-up
The significance of the region’s energy transition was clear to see at the latest edition of the World Energy Congress, which was hosted in Abu Dhabi in September.

Unsurprisingly, Saudi Arabia’s pavilion was the most-buzzing hive at the congress.


In addition to its broad programme of structural economic reforms and the recent appointment of a new energy minister, the region’s biggest economy has by far the most ambitious clean energy programme planned in the Middle East.

As Riyadh’s Renewable Energy Project Development Office (Repdo) outlined plans to launch tenders for its third round of its ambitious National Renewable Energy Programme (NREP) before the end of 2019, representatives from Saudi Arabia’s sovereign investment wealth fund, the Public Investment Fund (PIF), were meeting technology providers on the sidelines of the event to discuss the opportunities for building large-scale solar manufacturing facilities in the kingdom.


Emerging technologies
While solar and wind power are the main focus of the region’s energy diversification plans, some of the world’s largest energy companies were keen to showcase the potential for emerging technologies including waste-to-energy.

Another glimpse into the future was provided by discussions about the potential to store energy from peak-power sources such as solar and wind.

With the race to achieve cost-effective battery-storage solutions already underway, other technologies using hydrogen are being piloted in the region to offer another method to mitigate the intermittency issues of solar and wind power.

The challenge facing the region’s utilities is to convert their ambitious clean energy ambitions into actual investment projects.

MEED

This article is sourced from Power Technology sister publication www.meed.com, a leading source of high-value business intelligence and economic analysis about the Middle East and North Africa. To access more MEED content register for the 30-day Free Guest User Programme.

https://www.power-technology.com/comment/clean-energy-steals-the-limelight-at-world-energy-congress/
 
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New Renewable Energy Deals in Saudi Arabia
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Saudi Arabian plans for renewable energy

Saudi Arabia has realized that renewable energy, in particular, solar power is the way to achieve sustainability. As a result, it has signed numerous renewable energy deals over the year to build Saudi Arabian solar power plants. The focus of these deals is to invest in solar, wind, and concentrated solar. The Renewable Energy Project Development Office (REPDO) was established as part of the Ministry of Energy in 2017 to achieve the objectives of the National Renewable Energy Program (NERP) to accomplish vision 2030.

Second Round of NERP
Under the second round of NERP, KSA plans to work on at least 12 different Saudi Arabian solar power projects worth a capacity of 3.1 GW in 2019. Seven projects providing solar power in Saudi Arabia capable of 1.51GW of electricity have already been announced, the details of which are as follows

  1. Medina solar PV independent power project (IPP): Medina Province (50MW)
  2. Rafha solar PV IPP: Northern Borders province (45MW)
  3. Qurayyat solar PV IPP: Al-Jawf Province (200MW)
  4. Al-Faisaliah solar PV IPP: Mecca Province (600MW)
  5. Rabigh solar PV IPP: Mecca Province (300MW)
  6. Jeddah solar PV IPP: Mecca Province (300MW)
  7. Mahd al-Dahab solar PV IPP: Medina Province (20MW)
The power generated by these solar power systems is expected to be sufficient to supply 226,500 households in Saudi Arabia with solar power.

Additionally, it would create over 4,500 employment opportunities throughout the execution of the project. The advisors for this round include Sumitomo Mitsui Banking Corporation (SMBC) from Japan as the lead and financial advisor. DLA Piper from the UK acted as the legal advisor, whereas the technical advisor was the German Fichtner.

The projects would be split among two groups based on financing. Financing for Group A will be via corporate funding after analyzing the balance sheet of the consortium members or through limited or non-recourse debt. For Group B, limited or non-recourse debt facilities would provide financing. The REPDO would oversee 30% of the total development, whereas the sovereign wealth fund (the public investment fund) would manage the rest.

Wind Power Generation
Saudi Arabia realizing the advantages of wind energy, has also announced the establishment of the country’s first wind farm. In addition to ensuring solar power in Saudi Arabia, other forms of alternative energy like the wind is essential. The 400-megawatt Dumat Al Jandal facility is expected to start operations in 2022 and would be the biggest wind power plant in the Middle East.

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Ethraa and its Mission
The third round is expected to tender at least another six projects in the last quarter of the year. Ethraa stands behind Saudi Arabian vision of 2030 and plays its part in shifting to renewable energy. Join Ethraa in its mission of achieving a solar-powered KSA. Contact us for more information.

https://www.ethraa-a.com/new-renewable-energy-deals-in-saudi-arabia/
 
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