King Abdullah City for Atomic and Renewable Energy (K∙A∙CARE) announces its plan to launch the PV-Diesel Hybrid Power Solutions project. As a part of the National Transformation Plan 2020 (NTP) supporting Saudi Arabia’s Vision 2030, this is one of the projects of the Technology Localization initiative to increase the local content with a private sector partnership.
Today the King Abdullah City for Atomic and Renewable Energy (K∙A∙CARE) announces plans to lead this project aimed at localizing the technology of solar PV power integrated with diesel generators. K∙A∙CARE plans to release a request for proposals for the project on June 12. The program objective is to assist the selected Saudi-owned company to construct a PV diesel hybrid pilot generation plant. The recipient will use that experience to create a business installing PV systems to augment diesel generators. The expected outcomes include increased Saudi private sector participation in the electricity market as well as reduced fossil fuel consumption and diesel imports.
A substantial fraction — approximately 20% — of the Kingdom’s fuel consumption for electricity is in the form of diesel, and diesel is the highest cost fuel used in electricity generation, often used in remote locations with high transport cost incurred. Ongoing rapid price declines in PV systems, coupled with anticipated diesel price increases as the Saudi government seeks to reduce fuel subsidies, are converging to make PV-diesel hybrids economically competitive in the near term. Therefore, PV/diesel hybrids represent a major opportunity for solar energy in the Kingdom with clear and immediate economic benefit.
Companies interested in this project should contact the following email to get a copy of the RFP: