Imagine a groundbreaking solar initiative that not only transforms a nation but also sets a new standard for renewable energy investments worldwide. This vision is becoming a reality in Saudi Arabia, where a consortium, including ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO), has successfully secured financial closure on a massive 5.5 gigawatt (GW) solar photovoltaic project valued at a staggering 12 billion Saudi riyals ($3.2 billion).
Empowering the Future with Strategic Funding
The project is a testament to Saudi Arabia’s commitment to sustainable energy, with the majority of funding—amounting to SAR 9.4 billion—coming from a coalition of local, regional, and international banks. Esteemed financial institutions such as Banque Saudi Fransi, Mizuho Bank, Riyad Bank, National Commercial Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC have all contributed to this ambitious venture, showcasing global confidence in Saudi Arabia’s renewable energy sector.
Strategic Locations and Operational Milestones
The Saudi Power Procurement Company (SPPC) will play a pivotal role as the main recipient of the power generated from these projects. Located in strategic regions, two projects—2 GW Haden and 1.5 GW Muwayh—are set in the Makkah region, while the 2 GW Al-Khushaybi project finds its home in the Qassim region. These projects are slated to commence commercial operations in the first quarter of 2027, marking a significant milestone in the Kingdom’s journey towards energy diversification.
In a significant move this past June, ACWA Power signed power purchase agreements (PPAs) worth SAR 12.3 billion to spearhead the development, implementation, and operation of these major solar PV projects. This strategic collaboration not only highlights the Kingdom’s commitment to reducing its carbon footprint but also positions it as a leader in the global renewable energy landscape.
Saudi Arabia’s strides in solar energy development are not just about meeting energy demands; they represent a bold vision for a sustainable future that invites investors from around the globe to be part of this transformative journey. As the Kingdom continues to innovate and expand its renewable energy portfolio, the opportunities for investment and collaboration are boundless.
