In a remarkable stride towards a sustainable future, Acwa Power, in partnership with the Water and Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco), has achieved a significant milestone by securing the financial closure for the Haden, Muwayh, and Al Khushaybi solar photovoltaic (PV) projects. These groundbreaking initiatives represent a combined investment of $3.2 billion and are set to contribute an impressive 5.5 gigawatts (GW) of solar energy to Saudi Arabia’s power supply.
Powering Saudi Arabia’s Renewable Vision
Strategically located in the Makkah and Qassim regions, these solar plants will harness the sun’s power with individual capacities of 2GW, 2GW, and 1.5GW respectively. The collaboration between Badeel, Acwa Power, and Sapco underscores a shared commitment to advancing Saudi Arabia’s National Renewable Energy Programme (NREP), which aims to meet 70% of the Kingdom’s renewable energy targets by 2030. The Saudi Power Procurement Company (SPPC) will serve as the procurer and off-taker for these projects, ensuring a seamless integration into the national grid.
The financial backing for these solar ventures, amounting to $2.5 billion in senior debt financing, was secured through a consortium of distinguished local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC.
Voices of Leadership and Commitment
Acwa Power CEO, Marco Arcelli, expressed his enthusiasm, stating, “The successful financial closure of these pivotal projects marks a significant step towards realizing Saudi Arabia’s long-term energy ambitions. Our dedication to delivering clean, reliable, and cost-effective energy is unwavering.” He acknowledged the invaluable support of stakeholders and financial partners in transforming this vision into reality.
Sultan AlNabulsi, Acting CEO of Badeel, shared, “Achieving financial closure for these solar PV projects is a major milestone in our journey to bolster Saudi Arabia’s burgeoning renewable energy sector. We are committed to contributing to PIF’s goal of developing 70% of the Kingdom’s renewable energy by 2030.” He emphasized the continued collaboration in building a sustainable future for the nation.
Waleed Al Saif, Senior Vice President of New Energies at Saudi Aramco, highlighted the partnership’s potential, stating, “Our collaboration with Acwa Power and Badeel propels the Kingdom’s renewables sector forward. Together, we are elevating our renewables portfolio, advancing the energy transition to address the growing demand for cleaner power sources.”
Forging a Path to a Sustainable Future
The financial closure of these projects is part of a broader strategy by the Public Investment Fund (PIF) to enhance the renewable energy value chain. Recently, PIF announced new joint ventures to boost local production of wind turbine and solar PV components, aligning with global energy transition trends and positioning Saudi Arabia as a manufacturing hub for renewable technologies.
Currently, PIF and its partners are spearheading projects with a total capacity of 13.6 GW, involving investments exceeding $9 billion. These endeavors, which include notable projects like Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2, aim to empower the local private sector through active participation in the domestic supply chain.
With the addition of these three new projects, Acwa Power’s solar portfolio in Saudi Arabia now encompasses 14 projects, amounting to more than 17.8 GW of PV capacity. This expansion elevates Acwa Power’s total renewable capacity portfolio to an impressive 35 GW, underscoring its pivotal role in Saudi Arabia’s renewable energy landscape.
