ACWA Power signs deals worth $1.78bn at FII8 in Riyadh

Saudi’s ACWA Power has signed four significant agreements valued at $1.78bn on the first day of the Future Investment Initiative (FII8).

These agreements cover a range of projects across the GCC, China, Central Asia and North Africa, focusing on financing, renewable energy, storage projects, and research and development initiatives.

The first agreement is a $690m million framework agreement with the National Bank of Kuwait (NBK), aimed at providing general corporate finance facilities to support ACWA Power’s future project pipeline in Saudi Arabia, Kuwait, and other target markets.

Additionally, ACWA Power secured a $240m shariah-compliant equity bridge loan (EBL) from the International Finance Corporation (IFC), a member of the World Bank Group.

The loan will finance two solar power projects in Uzbekistan, namely the Sazagan 1 and 2 projects, each featuring a capacity of 500MW solar photovoltaic (PV) and 334MW battery energy storage systems (BESS).

Both projects are expected to commence commercial operations between Q3 2025 and Q4 2026, marking ACWA Power’s first corporate financing partnership with the IFC.

In a separate initiative, ACWA Power has entered into a joint development agreement with Gotion Power Morocco.

This collaboration will see the development of a 500MW wind power plant, complete with a 2,000 MWh BESS solution, to supply energy for Gotion Power’s forthcoming battery manufacturing facility in Morocco, anticipated to begin production in the first half of 2026. The initial investment for this project is pegged at $800m.

Furthermore, ACWA Power signed a Research and Development Cooperation Agreement with China’s Lujiazui Administration Bureau to establish an R&D centre in Shanghai.

This $54m project will focus on advancing technologies related to solar, wind, energy storage, green hydrogen, and desalination, collaborating with both local and global partners to develop sustainable water and energy solutions for deployment across ACWA Power’s extensive portfolio.

ACWA Power aims to foster strategic alliances

Marco Arcelli, CEO of ACWA Power, expressed pride in these agreements, stating, “These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue. By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors. This approach underscores our commitment to fostering strategic alliances that drive growth and advancement in the industry.

“Such strategic alliances reinforce ACWA Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future.”

He added, “We believe that through innovation and collaboration, we can create a sustainable future for generations to come.”