Saudi Arabia’s proposed 400 megawatt (MW) Dumat al-Jandal onshore wind farm has received four bids that are the lowest bid found anywhere in the world.
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. 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.
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.
In our opinion. “Developers are bidding low price levels due to consistently reducing costs of both wind and PV technologies plus Saudi Arabia offers a stable and mature financial market which helps developers mobilise low-cost capital.
Reference- Wind Power Monthly, Cleantechnica, Energy Central