Under the program, the Kingdom aims to install 54 GW of renewable energy by 2032, with 41 GW coming from solar power and the rest supplied by wind, geothermal and waste-to-energy power plants. The first round of tendering for the CPP is scheduled for the first half of 2013.
“Proponents that integrate local content into their projects will benefit from strong incentives through the rated criteria evaluation for utilizing labor and equipment that provide a positive net benefit to the local economy,” the authors stated. “While K.A.Care is aggressively pursuing the development of the local value chain, projects will be expected to escalate their local content inclusion accordingly.”
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After the procurement round, the target for solar is around 1.1 GW of installment, with 1.3 GW to follow under the second round. By 2032, the goal is to reach 16 GW of photovoltaic installments in addition to 25 GW of solar thermal plants.
Renewable power developers involved in the projects will have 20-year contracts to sell power. The first round of tendering will help determine the cost of installing large-scale renewable plants in Saudi Arabia in order to set up a pricing structure for the future bidding rounds.
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