ACWA Power announced that its 600-megawatt (MW) Al Shuaibah 1 solar photovoltaic (PV) power plant in Saudi Arabia has officially begun commercial operations. This follows the issuance of a commercial operation certificate from the Saudi Power Procurement Company (SPPC), which confirms that the plant is fully operational and can supply power to the grid.
The financial impact of Al Shuaibah 1’s operations is expected to show up in ACWA Power’s fourth-quarter 2024 financial results, as noted in the company’s statement to the Saudi stock exchange.
Al Shuaibah 1 is part of a larger project that includes Al Shuaibah 2, forming the Al Shuaibah Independent Water and Power Projects (IWPPs). Together, the two solar plants have a combined generation capacity of more than 2.6 gigawatts (GW). The financial closure for the Al Shuaibah IWPPs was reached in August 2023, marking the completion of all financial and contractual agreements needed to start full-scale development of both plants.
The ownership of Al Shuaibah 1 and 2 IWPPs is shared among three entities: ACWA Power holds a 35.01 percent stake, Water and Electricity Holding Company (Badeel) owns 34.99 percent, and Saudi Aramco owns 30 percent. SPPC, which manages power procurement in Saudi Arabia, is the primary purchaser of the electricity generated from these projects.
The Al Shuaibah solar plants contribute to Saudi Arabia’s renewable energy goals and are among the major renewable projects under development in the region. The Al Shuaibah projects add to ACWA Power’s growing portfolio of solar and renewable energy projects within Saudi Arabia and internationally.
