Principal Buyer invites bids for 3rd round of conventional IPP projects

Logo of Saudi Power Procurement Co. (Principal Buyer)

The Saudi Power Procurement Co. (Principal Buyer), under the supervision of the Ministry of Energy, commenced the qualification process for the third round of conventional IPP projects.

Each project will be developed under a build-own-operate (BOO) model, with the winning consortium holding 100% equity in the special purpose vehicle (SPV) established to develop and operate an independent power project (IPP). Each SPV will enter into a power purchase Agreement with Principal Buyer, according to the company’s statement.

These projects contribute to the Saudi Vision 2030 by supporting the sustainable growth of the energy sector over the medium and long term through the Circular Carbon Economy (CCE) approach.

The latter mechanism utilizes a range of carbon management solutions and technologies, including displacing liquid fuels with natural gas to reduce emissions intensity, while ensuring readiness to deploy carbon capture technologies in support of the Kingdom’s national emissions reduction goals, the statement added.

The Principal Buyer is responsible for preparing preliminary studies, tendering and awarding IPP projects, and purchasing electricity from energy projects in Saudi Arabia, in accordance with Principal Buyer license issued by the Saudi Electricity Regulatory Authority (SERA).