Imagine tapping into the world’s fastest-growing energy sector—right in the heart of the Arabian Peninsula. Saudi Arabia is making waves in the solar energy market, securing a remarkable $3.2 billion in financing for solar projects that promise to deliver an impressive 5.5 gigawatts (GW) of power.
A Powerful Collaboration
In a groundbreaking partnership, Acwa Power, Water and Electricity Holding Co (Badeel)—a Public Investment Fund (PIF) entity—and Saudi Aramco Power Co (Sapco), a subsidiary of Aramco, have successfully reached financial closure on three major projects: Haden, Muwayh, and Al Khushaybi. These ventures highlight Saudi Arabia’s commitment to renewable energy, as the nation takes significant strides towards a sustainable future.
Major Financial Backing
A consortium of banks has come together to support this ambitious initiative, contributing a substantial $2.5 billion in funding. This group includes financial powerhouses such as Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC. Such a robust financial backing underscores the confidence in Saudi Arabia’s renewable energy ambitions.
Strategically located in the Mecca region, the Haden and Muwayh plants each boast a capacity of 2 GW, while the 1.5 GW Al Khushaybi plant will rise in the Qassim region. These projects are set to commence commercial operations by the first quarter of 2027, marking a significant milestone in the Kingdom’s energy landscape.
The Saudi Power Procurement Company (SPPC), a state-owned entity, has already inked power purchase agreements for all three projects, demonstrating the country’s forward-thinking approach to energy procurement.
Leading the Solar Charge
With 14 solar projects already under its belt and a total capacity surpassing 17.8 GW, Acwa Power is a key player in Saudi Arabia’s solar sector. The Kingdom’s recent announcement of 21 new renewable energy projects, set to generate over 19 GW, further cements its status as a leader in the global renewable energy market.
As Saudi Arabia continues to expand its solar capabilities, it presents an unparalleled opportunity for investors and companies worldwide to participate in a transformative journey towards a greener future.
