French energy company Engie SA is seeking to gain a foothold in renewable energy markets in Saudi Arabia and the United Arab Emirates, which are holding large tenders for wind and solar power plants to diversify their energy sources. “The Gulf region has serious potential” with “very large auctions,” Francois-Xavier Boulle, Engie’s managing director for renewables in the Middle East and North Africa, said in an interview on Thursday. He said winning projects in the region is part of Engie’s strategy to accelerate the development of renewable energy, reported by Bloomberg.
Solar projects in Abu Dhabi
The French company, which already operates gas-fired power plants in the Gulf, faces stiff competition from energy rivals that are tapping the region’s growing demand for clean electricity. The Kingdom of Saudi Arabia is building new industrial plants to create jobs and develop an economy less dependent on hydrocarbons as part of Crown Prince Mohammed bin Salman’s Vision 2030 plan.
Bull said Engie is preparing to bid for four solar projects totaling 3 gigawatts and 1.5 gigawatts of wind projects in what is known as the sixth round of tenders in Saudi Arabia. He said the competition was “aggressive” and the company had unsuccessfully bid for 3.7 gigawatts of solar projects in the kingdom last year. The company is also awaiting the outcome of a tender for a 1.5 gigawatt solar project in Abu Dhabi.
Renewable energy
The French utility has so far been more successful in Egypt, where it is part of a consortium that owns a 262.5 megawatt wind farm along the Gulf of Suez. The companies just signed a deal to expand another wind farm nearby by 150 megawatts.
When completed next year, the 650 megawatt wind farm will be the largest in Africa. Engie and its partners are also looking to build a 1 gigawatt wind farm in Egypt. It aims to finalize contracts for the project next year with a view to building it by 2028, Bull said.