French utility company Engie SA is intensifying its efforts to establish a significant presence in the renewable energy sectors of Saudi Arabia and the United Arab Emirates (UAE), as both countries prepare to roll out substantial tenders for wind and solar farms. These tenders are central to the Gulf nations’ strategies to diversify their energy portfolios and reduce their reliance on fossil fuels.
Francois-Xavier Boul, Engie’s Managing Director for Renewables in the Middle East and North Africa, highlighted the tremendous potential of the Gulf region, citing the “very large auctions” that present significant opportunities for growth. In an interview on Thursday, Boul emphasized that securing projects in these countries is a key part of Engie’s strategy to accelerate its renewable energy ambitions.
Already a key player in the Gulf with its gas-fired power plants, Engie faces increasing competition from other energy giants keen on tapping into the region’s growing demand for clean energy. Saudi Arabia, in particular, is pushing forward with its Vision 2030 initiative, a transformative plan led by Crown Prince Mohammed bin Salman that seeks to create new industries, generate jobs, and reduce the country’s dependency on hydrocarbons.
Engie is preparing to bid on four solar projects in Saudi Arabia, totaling 3 gigawatts, along with 1.5 gigawatts of wind projects, as part of the kingdom’s round six tenders. Boul acknowledged the “aggressive” nature of the competition, noting that Engie was unsuccessful in securing 3.7 gigawatts of solar projects in the country last year. The company is also awaiting results from a tender for 1.5 gigawatts of solar projects in Abu Dhabi.
While the competition is fierce in Saudi Arabia and the UAE, Engie has experienced greater success in Egypt, where it is part of a consortium that owns a 262.5-megawatt wind farm located along the Gulf of Suez. Recently, the consortium signed an agreement to extend the wind park by 150 megawatts. Once completed next year, the expanded 650-megawatt facility will become the largest wind farm in Africa.
Looking ahead, Engie and its partners are working to develop a 1-gigawatt wind project in Egypt, with plans to finalize contracts in 2024 and commence construction by 2028, according to Boul. This project is part of the company’s broader strategy to expand its footprint in the region’s renewable energy market.
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