Saudi Arabia: ACWA Power, Badeel, SAPCO sign PPAs for major solar projects

ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) signed power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for three significant solar photovoltaic (PV) projects in Saudi Arabia.

The agreement was signed in the presence of Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, the kingdom’s Minister of Energy.

The Haden and Muwayh plants in the Makkah region, each with a capacity of 2,000MW, and the Al Khushaybi plant in the Qassim region with a capacity of 1,500MW, will be jointly owned by Badeel, ACWA Power and SAPCO.

These projects are part of a larger development initiative by the companies, which includes several other projects with a total capacity of 13,600MW, involving over $9bn in investment from the Public Investment Fund (PIF) and its partners.

The new solar PV facilities, valued at SAR12.3bn ($3.3bn), are expected to add 5,500MW of renewable energy to the national grid by the first half of 2027.

Financial closes are anticipated by Q4 2024.

Saudia Arabia is accelerating its energy transition journey

“Saudi Arabia is moving fast in its energy transition, and we are proud to contribute as a key partner with Badeel and Aramco,” said Raad Al-Saady, vice chairman and MD of ACWA Power. “With these projects, we reach 35,000MW of renewable capacity worldwide, making us a global leader in the energy transition for reliable and affordable renewable energy.”

Sultan AlNabulsi, acting CEO of Badeel, highlighted the significance of this milestone, stating, “Badeel is proud to achieve this milestone for the new solar PV projects, contributing to PIF’s commitment to develop 70 per cent of Saudi Arabia’s renewable energy by 2030.”

Aramco, targeting investments in up to 12,000MW of solar and wind energy by 2030, aims to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions by 2050.

“We are delighted to extend our partnership with ACWA Power and Badeel, advancing the energy transition and meeting rising power demand with fewer emissions,” said Waleed Al Saif, Aramco SVP of New Energies.

The projects will use advanced PV technology to ensure high efficiency, reliability, and performance, catering to the rising energy demand in Saudi Arabia. By 2030, renewables and gas are each expected to account for approximately 50 per cent of domestic electricity production.

ACWA Power portfolio expands to 17,800MW

With this announcement, ACWA Power’s portfolio of solar projects in Saudi Arabia now totals 17,800MW, and its global renewable capacity reaches 35,000MW.

The development of Saudi Arabia’s renewable energy sector is a core objective of Vision 2030, the kingdom’s blueprint for a modern, diversified economy, with utilities and renewables identified as one of PIF’s 13 strategic sectors.