ACWA Power and partners sign $3.3bn solar PV agreements in Saudi Arabia

In a major step toward bolstering Saudi Arabia’s renewable energy capabilities, ACWA Power, together with the Water and Electricity Holding Company (Badeel) and Saudi Aramco Power Company (SAPCO), has announced the signing of power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC). These agreements, valued at SAR12.3 billion (approximately USD3.3 billion), pave the way for three new significant solar photovoltaic (PV) projects—Haden, Muwayh, and Al Khushaybi—expected to collectively add 5,500 MW to the national grid by the first half of 2027.

These projects represent crucial components of the National Renewable Energy Program (NREP), overseen by the Ministry of Energy. They are expected to reach financial closure by the fourth quarter of 2024, significantly advancing Saudi Arabia’s commitment to renewable energy as outlined in Vision 2030.

Raad Al-Saady, Vice Chairman and Managing Director at ACWA Power, emphasized the company’s pivotal role, stating, “Saudi Arabia is moving fast in its energy transition and we are proud to contribute as a key partner together with Badeel and Aramco. With these projects, we reach 35,000 MW of renewable capacity that we control worldwide, which, combined with almost 20,000 MWh of storage capacity, makes us one of the global leaders in the energy transition for reliable and affordable access to renewable energy at an unrivalled pace.”

Sultan AlNabulsi, Acting Chief Executive Officer of Badeel, also commented on the milestone, “Badeel is proud to achieve this milestone for the new three solar PV projects, as an anchor sponsor under PIF to achieve its commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. This comes as part of PIF’s continued efforts to progress towards unlocking the capabilities of promising sectors and achieving Saudi Arabia’s ambitions in renewable energy.”

The initiative not only underscores the collaborative efforts of ACWA Power, Badeel, and SAPCO but also aligns with the Public Investment Fund’s (PIF) strategy. Utilities and renewables are among PIF’s 13 strategic sectors, with the fund focusing on empowering the private sector to enhance Saudi Arabia’s economic diversification efforts.

These solar projects are set to provide a significant boost to the country’s renewable energy output, aiding in the reduction of dependency on fossil fuels and promoting environmental sustainability. The projects are also expected to contribute to job creation and technological advancement within the region.

The strategic agreements for the Haden, Muwayh, and Al Khushaybi solar projects are a testament to Saudi Arabia’s aggressive pursuit of its Vision 2030 goals. By investing heavily in renewable energy, the kingdom is not only looking to diversify its economy but also position itself as a leader in global energy transition. This move is expected to set a precedent for other nations in the Middle East and beyond.