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KACARE Launches Competitive Procurement Program
February 26, 2013 - As part of Saudi Arabia’s efforts to move towards clean, renewable energy, the King Abdullah City for Atomic and Renewable Energy (KACARE) recently released a white paper detailing the establishment of a competitive procurement program to attract the best methods and designs for next-generation energy. Officially called the Competitive Procurement Process (CPP), the program will reflect the KACARE Charter in the pursuit of a “sustainable energy mix that emphasizes education, research, global collaboration, local integration, commercialization and social benefit.”
 
The CPP will take place over a two to three year period and involve introductory, first, and second rounds. Each round will be based on certain criteria and the procurement targets will increase in scope every round. The end target for the competition is 7,000 megawatts capacity generated from renewable sources. Generating facilities can draw upon wind, solar, geothermal, and waste-to-energy sources for the competition. After adjudication, the best bid for procurement will be offered a 20 year power purchase agreement (PPA) to execute and maintain the power facilities.
 
The adjudication process will take into account the local spending, training, research, and development that occurred in Saudi Arabia during the CPP and that will occur if the submitter receives a PPA offer. Proposals should implement local businesses, materials, and Saudi workers to best reflect the Saudi Government’s efforts to expand the knowledge-based economy and encourage participation in the domestic marketplace.
 
KACARE was established in April 2010 with the purpose of transitioning Saudi energy generation towards renewable energy. The organization set a goal of producing 54 gigawatts (GW) from renewable energy sources by 2032. Within that goal, the Kingdom aims for solar energy to produce 41GW of the 54GW total. Many industrial sectors throughout the Saudi economy are working with KACARE to help achieve those goals and provide future jobs to Saudi youths.
 
To view the full white paper, click here.

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Last Updated November 26, 2014
©2014 U.S.-Saudi Arabian Business Council