01 February 2019
Abu Dhabi-based Masdar said its consortium with French group EDF Energies Nouvelles has been awarded the contract to build the $500-million Dumat Al Jandal project, the first utility-scale wind farm in Saudi Arabia.
The deal was awarded by the Renewable Energy Project Development Office (Repdo) of Saudi Arabia’s Ministry of Energy, Industry and Mineral Resources (MEIM), said Masdar.
The project will be the second tender to be issued by MEIM as part of the National Renewable Energy Programme under the auspices of the King Salman Renewable Energy Initiative, which aims to diversify the country’s energy sector, it added.
Repdo said it had received four bids for the project from companies across five countries.
The project was awarded based on the levellised cost of energy of 2.13 cents/kWh, thus registering a new record-low price for a project of this type in Europe, Middle East and Africa.
The award represents another significant step taken by Saudi Arabia towards creating a diversified power sector mix which puts renewable technologies at the forefront.
When completed, the Dumat Al Jandal wind farm will generate sustainable power for up to 70,000 Saudi households and is expected to create almost 1,000 jobs during construction and operation, it stated.
Dumat Al Jandal was chosen for the kingdom’s first utility-scale wind power project after predevelopment studies showed a strong mixture of wind capabilities on the site. The average annual generation from the wind plant is expected to be around 1.4 TWh.
The National Renewable Energy Programme is a strategic initiative under Vision 2030 and the King Salman Renewable Energy Initiative. The programme aims to maximise the potential of renewable energy in Saudi Arabia.