(Adds companies, background)
KHOBAR, Saudi Arabia, April 10 Top oil exporter
Saudi Arabia has shortlisted companies for its solar and wind
power projects, as part of the first round of its renewable
energy initiative, the energy ministry said on Monday.
France's EDF Energies Nouvelles, Japanese companies Marubeni
Corporation and Mitsui & Co. and Saudi Acwa Power are among the
firms which have qualified to bid for the 300 megawatt solar PV
project in Sakaka, the Al Jouf Province in the north of the
Abu Dhabi Future Energy Company (Masdar), GE, Marubeni
Corporation, Mitsui & Co., JGC Corp, SNC Lavalin Arabia and
Iberdrola Renovables Energia are among those qualified to bid
for the 400 megawatt wind farm project in Midyan in the
"The market response to the Kingdom’s invitation to its
first renewable energy projects has been overwhelmingly
positive, demonstrating market confidence in our vast renewable
energy potential and investment environment," Saudi Energy
Minister Khalid Al Falih said.
Saudi Arabia is targeting 9.5 GW of renewable energy by 2023
in line with Vision 2030, an economic reform plan launched last
year to diversify the economy beyond oil. The renewables
programme involves investment of between $30 billion and $50
billion by 2023.
Its state oil giant Saudi Aramco has said renewables is in
its radar as it will play a major role in the sector. It has
created a department for renewables within the company to
develop wind and solar projects.
Saudi Aramco is part of the renewable energy steering
committee chaired by Falih which will oversee the renewable
"The key is to make projects bankable with predictable cash
flows and clear reliable regulations, the key is predictability
and a clear time frame that developers must adhere to," said
Ingrid Naranjo, head of investor relations at asset management
firm Centuria Capital UK.
The ministry added it would announce the next phase of its
renewable energy projects during the Saudi Arabia Renewable
Energy Investment Forum (SAREIF) in Riyadh on April 17-18.
(Reporting by Reem Shamseddine; editing by Susan Thomas and