Saudi Arabia-based utility company ACWA Power recently submitted an application to the Capital Market Authority (CMA) for a capital increase. The proposed increase amounts to 7.125 billion Saudi riyals ($1.9 billion) and will be raised by offering discounted shares to existing shareholders, according to a statement from the Tadawul stock market authority on Thursday.
The company stated, “ACWA Power announces the submission of an application to increase the Company’s capital by offering the rights issue to the Capital Market Authority.” ACWA Power has outlined plans to increase its annual investments over the period of 2024 to 2030. These investments are projected to rise to between $2 billion and $2.5 billion annually, compared to its previous range of $1 billion to $1.3 billion per year.
In renewable energy developments, ACWA Power has recently undertaken several projects in Saudi Arabia. These include the Sudair Solar PV Project, with an installed capacity of 1,500 megawatts (MW), and the Shuaibah Two PV Solar Power Plant, with a capacity of 2,060 MW. The company has also developed the Red Sea Wind Power Project, which is expected to have a capacity of 400 MW.
In April 2024, ACWA Power partnered with the International Renewable Energy Agency (IRENA). The collaboration focuses on promoting clean energy sources, including renewable energy infrastructure, green hydrogen, solar technologies, and energy-water interconnections.
Financially, the Tadawul-listed firm reported a 52% increase in net profits in the first half of 2024. The profit reached 630.6 million riyals ($168 million), compared to the same period in 2023. These developments show ACWA Power’s plans to expand its renewable energy portfolio and meet rising investment demands.
