ACWA Power, Badeel, and Saudi Aramco’s subsidiary SAPCO have successfully reached financial close on a landmark $8.2 billion investment to develop 15 gigawatts (GW) of renewable energy in Saudi Arabia. This major initiative will see the establishment of seven large-scale renewable projects, including five solar photovoltaic (PV) plants and two wind energy projects, as part of the Kingdom’s National Renewable Energy Program (NREP). The announcement highlights a significant step forward in Saudi Arabia’s transition to clean energy and aligns with the country’s goal of increasing its renewable energy capacity.
The projects will be located across several regions in Saudi Arabia. The Bisha solar PV plant in Asir Province and the Humaij solar PV plant in Madinah Province will each have a capacity of 3 GW. The Khulis solar PV project in Makkah Province will contribute 2 GW, while Afif1 and Afif2 solar PV plants, both in Riyadh Province, will provide 2 GW each. In addition to solar power, the Starah wind project and the Shaqra wind project, also located in Riyadh Province, will have capacities of 2 GW and 1 GW, respectively. These seven projects will be jointly owned by ACWA Power, Badeel, and SAPCO, with the Saudi Power Procurement Company serving as the procurer and off-taker.
The projects are expected to be operational between the second half of 2027 and the first half of 2028. They represent a critical component of Saudi Arabia’s NREP, which is led and supervised by the Ministry of Energy. The initiative also reflects the Public Investment Fund’s (PIF) commitment to achieving 70% of the Kingdom’s renewable energy target capacity by 2030.
PIF, through its wholly owned company Badeel, has been actively supporting multiple renewable projects, and its ongoing initiatives now include a cumulative capacity of 28.6 GW, backed by investments exceeding $17 billion. These projects, such as Haden, Muwayh, Al Khushaybi, Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2, involve strong participation from the local private sector, ensuring domestic supply chain engagement and the development of renewable energy expertise within the Kingdom.
With these new projects, ACWA Power’s renewable portfolio in Saudi Arabia grows to 21 projects, representing over 34 GW of combined capacity. Globally, ACWA Power now manages a renewable energy portfolio totaling 51.9 GW, further solidifying its position as a leader in clean energy development. The company is also recognized as the world’s largest private water desalination operator and a first mover in green hydrogen projects, demonstrating its commitment to energy transition and sustainable solutions.
The $5.9 billion senior debt financing for the seven plants was provided by a consortium of local, regional, and international banks. Participating banks include Ajman Bank, Al Masraf, Alinma Bank, Arab National Bank, Bank of China, China Construction Bank, China Minsheng Bank, Emirates NBD Bank, Eurobank, First Abu Dhabi Bank, HSBC Bank Middle East, Industrial and Commercial Bank of China, KfW IPEX-Bank, Mizuho Bank, Natixis, Piraeus Bank, Saudi Awwal Bank, Saudi National Bank, Société Générale, Standard Chartered Bank, and Sumitomo Mitsui Trust Bank.
This financial close marks a significant milestone in Saudi Arabia’s journey towards renewable energy expansion and reflects strong collaboration between private developers, the public sector, and international financial institutions. The scale and ambition of these projects demonstrate the Kingdom’s commitment to sustainable energy development and its vision of becoming a global leader in clean energy.
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