The projects consist of five new solar photovoltaic plants and two wind power plants.
In the presence of His Royal Highness, Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, Minister of Energy, ACWA Power, a leader in energy transition, a first mover in green hydrogen, and the world’s largest private water desalination company, the Water and Electricity Holding Company (Badeel), a wholly owned company of PIF, and Saudi Aramco Power Company (SAPCO), a wholly owned subsidiary of Aramco, today announced the signing of power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) as the procurer and off-taker for the development of five large-scale solar photovoltaic (solar PV) plants and two large-scale wind energy plants across Saudi Arabia.
With a total investment value of approximately $8.3 billion (more than SAR 31 billion), the seven new projects aim to generate a combined capacity of 15,000 MW (12,000 MW solar PV and 3000 MW wind energy). They are an important component in Saudi Arabia’s National Renewable Energy Programme (NREP), which is led and supervised by the Ministry of Energy and is reflected in PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy target capacity by 2030.
The seven new renewable energy plants include Bisha (3000 MW solar PV, located in Asir Province), Humaij (3000 MW solar PV, located in Madinah Province), Khulis (2000 MW solar PV, located in Makkah Province), Afif1 (2000 MW solar PV, located in Riyadh Province), Afif2 (2000 MW solar PV, located in Riyadh Province), Starah (2000 MW Wind, located in Riyadh Province), and Shaqra (1000 MW wind, located in Riyadh Province); and will be jointly owned by Badeel, ACWA Power and SAPCO. The projects will contribute an additional 15,000 MW of renewable energy to the national power grid once operational in the second half of 2027 and first half of 2028. Financial closes are expected by the third quarter of 2025.
Marco Arcelli, Chief Executive Officer at ACWA Power, commented on the signing: “This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape, underscoring the nation’s steadfast commitment to achieving its ambitious renewable energy targets. As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.”
Sultan AlNabulsi, Acting Chief Executive Officer at Badeel, said: The agreement is a continuation of Badeel’s efforts, as an anchor sponsor under PIF to achieve its commitments in the renewable energy sector across Saudi Arabia, and contributing to unlocking the potential of this strategic sector across the entire supply chain. This investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy, and increasing the country’s investment attractiveness.”
Waleed Al Saif, Aramco SVP of New Energies, said: “We are delighted to expand our footprint in the renewables business through our subsidiary, SAPCO. In partnership with ACWA Power and Badeel, we are helping build Saudi Arabia’s renewable energy infrastructure. In doing so, we are laying the foundations for a more sustainable power network. Through such investments, we aim to unlock additional value from Saudi Arabia’s abundant natural resources and grow Aramco’s New Energies portfolio. We look forward to bringing these projects online with our partners and remain convinced that all forms of energy have a role to play in a pragmatic energy transition.”
The utilities and renewable energy sector is one of PIF’s strategic sectors. PIF works to further unlock the potentials of promising sectors, and empower the private sector to support efforts to diversify local economy in line with Saudi Arabia’s Vision 2030.
Badeel, ACWA Power and SAPCO are currently sponsoring several projects, including the new projects with a total cumulative capacity of 28.6 GW, involving over $17 billion (SAR 63.75 billion) in investments. These joint projects, which also include Haden, Muwayh, Al Khushaybi, Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah and Saad 2, are intended to enable and support the local private sector through domestic supply chain participation.
Aramco is actively developing a renewables portfolio to reduce greenhouse gas emissions from its operations and enhance long-term business value, aligning with its net-zero ambitions.
With the addition of these new projects, ACWA Power’s solar and wind portfolio in Saudi Arabia now stands at 21 projects, representing more than 34 GW of combined renewable capacity. It also brings ACWA Power’s total renewable capacity portfolio to 51.9 GW.
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