Saudi Arabia has inked agreements worth over 31 billion riyals (USD 8.3 billion) with a consortium led by ACWA Power to develop seven major renewable energy projects. These developments are expected to add 15 gigawatts (GW) of clean energy capacity to the kingdom’s grid.
The deals, signed by the state-owned Principal Buyer company in the presence of Energy Minister Prince Abdulaziz bin Salman, mark one of the largest global capacity additions for renewable energy in a single phase.
The projects are part of the kingdom’s National Renewable Energy Programme (NREP), which aims to scale up Saudi Arabia’s clean energy footprint using competitive pricing and investor-friendly models.
ACWA-Led Consortium
The main developer for these projects is ACWA Power, which is partnering with Badeel (a subsidiary of the Public Investment Fund) and Aramco Power, the renewables arm of Saudi Aramco.
The Principal Buyer, responsible for feasibility and tendering, has already signed power purchase agreements for 38 GW of renewable capacity. Of this, 10.21 GW is currently connected to the national grid. The country targets 12.7 GW of connected capacity by the end of 2025, and more than 20 GW by 2026.
Project Breakdown
Five of the new projects are photovoltaic solar energy initiatives, including the Bisha Project in the Aseer region and the Humaij Project in Madinah, each with a capacity of 3,000 MW. The Khulis Project in Makkah will generate 2,000 MW, while the Afif 1 and Afif 2 projects, both located in the Riyadh region, will add another 4,000 MW combined.
In addition, wind energy projects will be developed in Riyadh, which include the 2,000 MW Starah Project and the 1,000 MW Shaqra Project.
ACWA Power’s Growing Global Reach
Backed by the PIF, ACWA Power has rapidly expanded into 14 countries, managing 101 power and desalination projects valued at USD 107.5 billion as of February 2025. The company is now setting its sights on China, with plans to invest up to USD 30 billion there by 2030. CEO Marco Arcelli described China as a “gigantic market,” forecasting significant opportunities despite global trade uncertainties.
The International Energy Agency forecasts a 14 per cent annual growth in renewable energy generation in the Middle East through 2027. ACWA Power’s aggressive expansion in recent times aligns with the trend.
ACWA is actively pursuing new renewable energy projects in Saudi Arabia, aligned with the kingdom’s goal to achieve 130 GW of clean energy by 2030 (Saudi Vision 2030). Several of ACWA’s earlier projects have already commenced partial or full operations. These include the 2.1 GW Al Shuaiba solar power plant and two 500-megawatt wind farms in Uzbekistan — Bash and Dzhankeldy.
