ACWA Power has secured three power purchase agreements (PPAs) valued at $3.25 billion for three large-scale photovoltaic (PV) solar plants.
The combined capacity of the three projects will be 4.55 GW, providing renewable energy to around 750,000 households.
The projects, named Ar Rass 2, Saad 2, and Alkahfah, are located in the central and northern regions of Saudi Arabia and have respective production capacities of 2,000 MW, 1,125 MW, and 1,425 MW.
The PPAs, with a duration of 35 years, were signed between the Saudi Power Procurement Company (SPPC) and ACWA Power’s subsidiary companies: Nawwar Renewable Energy Company, Saad Two Renewable Energy Company, and Ishaa Renewable Energy Company.
These projects are part of the National Renewable Energy Program (NREP) led by the Ministry of Energy, with PIF tasked to develop 70% of NREP’s target capacity.
ACWA Power’s subsidiary, Badeel, which is wholly owned by the Public Investment Fund, holds a 49.9 percent equity stake in each of the three project companies.
ACWA Power is a global player in power generation, water desalination, and green hydrogen plants.
This deal comes after ACWA Power’s recent agreements in Uzbekistan, where the company is expanding its renewable energy portfolio.
ACWA Power entered a partnership worth $100 million with Uzkimyosanoat to advance green hydrogen projects and decarbonize Uzbekistan’s chemical sector.
Additionally, the company secured a $120 million financing agreement for the 100 MW Karatau Wind Project.
Saudi Arabia’s Vision 2030 aims to achieve an optimal power generation energy mix by utilizing renewable energy sources and reducing dependence on liquid fuels.
The Ministry of Energy targets a renewable energy share of around 50% in the energy mix by 2030, with the remaining portion supplied by high-efficiency gas-fueled power plants.
PIF is currently developing a total of five renewable projects with a cumulative capacity of 8 GW and over $6 billion investment.
These projects, including Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2, aim to support the local private sector through significant local content contribution and procurement from local supply chains.
