In the presence of His Royal Highness Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, Minister of Energy, ACWA Power—an energy transition leader, green hydrogen pioneer, and the world’s largest private water desalination company—along with the Water and Electricity Holding Company (Badeel), a Public Investment Fund (PIF) wholly owned entity, and Saudi Aramco Power Company (SAPCO), a fully owned subsidiary of Aramco, announced the signing of Power Purchase Agreements (PPAs) with the Saudi Power Procurement Company (SPPC).
These agreements mark a major step toward the development of seven large-scale renewable energy projects—five solar photovoltaic (PV) plants and two wind power facilities—strategically located across Saudi Arabia. SPPC will serve as the procurer and off-taker for the projects.
With a total investment of approximately $8.3 billion (over SAR 31 billion), the projects are expected to deliver a combined capacity of 15,000 MW, comprising 12,000 MW of solar PV and 3,000 MW of wind energy. These initiatives are integral to Saudi Arabia’s National Renewable Energy Programme (NREP), led by the Ministry of Energy, and aligned with PIF’s mandate to develop 70% of the Kingdom’s renewable energy target capacity by 2030.
The seven projects include:
- Bisha – 3,000 MW solar PV (Asir province)
- Humaij – 3,000 MW solar PV (Madinah province)
- Khulis – 2,000 MW solar PV (Makkah province)
- Afif 1 – 2,000 MW solar PV (Riyadh province)
- Afif 2 – 2,000 MW solar PV (Riyadh province)
- Starah – 2,000 MW wind (Riyadh province)
- Shaqra – 1,000 MW wind (Riyadh province)
The projects will be jointly owned by ACWA Power, Badeel, and SAPCO, and are scheduled to begin operations between the second half of 2027 and the first half of 2028. Financial closing is anticipated by the third quarter of 2025, paving the way for a significant boost in renewable energy contributions to Saudi Arabia’s national grid. “This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape, underscoring the nation’s steadfast commitment to achieving its ambitious renewable energy targets. As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.,” said Marco Arcelli, Chief Executive Officer of ACWA Power.
