Al Shuaibah solar PV projects : ACWA Power-led consortium announces financial closure

In a monumental step for Saudi Arabia’s renewable energy vision, leading energy player ACWA Power, in collaboration with the Water and Electricity Holding Company (Badeel) – under the Public Investment Fund (PIF) – and Saudi Aramco Power Company (SAPCO), has announced the successful financial close of the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects. Collectively, these projects will generate over 2.6GW of clean electricity, propelling the nation closer to the objectives set in the National Renewable Energy Program (NREP).

The joint ownership for these ventures is divided among Badeel (34.99%), ACWA Power (35.01%), and SAPCO (30%). The Saudi Power Procurement Company (SPPC) will act as the procurer and off-taker. Structuring this significant financial undertaking involves a mix of local and international funding. A noteworthy $1.63 billion senior debt financing includes a Saudi Riyal-denominated S$450 million loan from the National Development Fund and a $1.18 billion commercial facility from an array of banks including Bank Saudi Fransi, Saudi National Bank, and Standard Chartered Bank, among others.

ACWA Power announces financial closure for Al Shuaibah solar PV projects. Photo courtesy of ACWA POWER.

Both projects, strategically located in Al Shuaibah within the Makkah Province, will collectively power nearly 450,000 households. With Al Shuaibah PV 1 and Al Shuaibah PV 2 boasting capacities of 600 MW and 2,031 MW respectively, the total investment hits an impressive $2.37 billion, with commercial operations kickstarting in 2025.

ACWA Power’s CEO, Marco Arcelli, underscored the project’s significance, emphasizing its alignment with Saudi Arabia’s clean energy aspirations. Similarly, Husam Al-Ghailani, CEO of Badeel, lauded the achievement as a beacon for the Kingdom’s renewable growth. Meanwhile, Mohammed Al Qahtani, President of Downstream at Aramco, highlighted Aramco’s dedicated push for sustainability and reduction of its carbon footprint.

With the inclusion of these solar projects, ACWA Power reinforces its position in Saudi’s renewable landscape, amassing over 12GW in PV capacity domestically. The recent collaborations with PIF’s subsidiary Badeel add another 4.525GW to the tally, reinforcing ACWA Power’s global renewable capacity at a staggering 23.4GW.