ACWA Power will be developing three large-scale photovoltaic (PV) solar plants in Saudi. These power purchase agreements (PPAs) are estimated to be at $3.25 billion with the combined capacity of 4.55 GW.
The deal was 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.
As per the pact, the three projects called as Ar Rass 2, Saad 2, and Alkahfah are located in the central and northern regions of Saudi Arabia with respective production capacities of 2,000 MW, 1,125 MW, and 1,425 MW. The projects will be able to provide power to around 750,000 households.
These PPAs have a duration of 35 years and projects are a part of the National Renewable Energy Program (NREP) led by the Ministry of Energy with the goal to achieve NREP’s 70% of the target capacity .
However, Badeel, ACWA Power’s subsidiary, a wholly owned by the Public Investment Fund, shares 49.9 percent equity stake in each of the three project companies. These projects target to support the local private sector with significant content contribution from local players and procurement from local supply chains.
This pact comes after ACWA Power’s recent deal with Uzbekistan where the firm targets to expand its renewable energy portfolio.Besides, ACWA Power also entered a partnership worth $100 million with Uzkimyosanoat to advance green hydrogen projects and decarbonise Uzbekistan’s chemical sector.
In addition, it also inked a $120 million financing agreement for the 100 MW Karatau Wind Project, which is expected to be operational by February 2025.
By 2030, the Ministry of Energy has a target to achieve 50% of renewable energy share in the energy mix by 2030.