ACWA Power, Badeel, and Saudi Aramco Sign Agreements for Major Solar Projects in Saudi Arabia
In a significant stride towards enhancing Saudi Arabia’s renewable energy capacity, ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) have officially signed power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for three major solar photovoltaic (PV) projects. The signing ceremony saw the presence of Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, the Kingdom’s Minister of Energy.
The solar projects encompass two plants in the Makkah region, Haden and Muwayh, each boasting a capacity of 2,000MW, and the Al Khushaybi plant in the Qassim region with a 1,500MW capacity. These ventures are under the joint ownership of Badeel, ACWA Power, and SAPCO.
This initiative is a critical component of a larger development plan involving multiple projects with a cumulative capacity of 13,600MW, necessitating over $9 billion in investment from the Public Investment Fund (PIF) and its partners. The new solar PV facilities, valued at SAR12.3 billion ($3.3 billion), are projected to contribute 5,500MW of renewable energy to the national grid by the first half of 2027. Financial closures for the projects are anticipated by the fourth quarter of 2024.
Raad Al-Saady, Vice Chairman and Managing Director of ACWA Power, expressed pride in the company’s role in Saudi Arabia’s energy transition. "Saudi Arabia is moving fast in its energy transition, and we are proud to contribute as a key partner with Badeel and Aramco," he said. "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 milestone achievement, 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."
Meanwhile, Aramco, aiming for investments in up to 12,000MW of solar and wind energy by 2030, plans 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 are set to utilize advanced PV technology to ensure high efficiency, reliability, and performance, addressing the increasing energy demand in Saudi Arabia. By 2030, it is expected that renewables and gas will equally account for approximately 50 per cent of domestic electricity production.
With this announcement, ACWA Power’s portfolio of solar projects in Saudi Arabia now totals 17,800MW, while the company’s global renewable capacity has reached 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.
Source: Gulf Business
