Power purchase agreements signed for major renewables program in Saudi Arabia

In the presence of His Royal Highness, Prince Abdulaziz bin Salman Al-Saud, Minister of Energy, ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO) have announced the signing of power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for the development and operation of three significant new solar photovoltaic (PV) projects in Saudi Arabia.

ACWA Power, a leader in the energy transition and a company in which PIF owns a stake, PIF-owned Badeel, and SAPCO, a wholly owned subsidiary of Aramco, will jointly own the solar projects – Haden, Muwayh and Al Khushaybi. These mark a major milestone for the National Renewable Energy Program (NREP), which is led and supervised by the Ministry of Energy. 

With a combined value of SAR12.3 billion (USD3.3 billion), the new solar PV facilities are expected to contribute an additional 5,500 MW of renewable energy to the national power grid once operational in the first half of 2027. Financial closes are expected by the fourth quarter of 2024.

• Three significant new solar photovoltaic (PV) projects in Saudi Arabia, contributing a combined capacity of 5,500 MW of renewable energy
• Developments mark a significant step for the National Renewable Energy Program, which is supervised by the Ministry of Energy
• New facilities align with PIF’s mandate to develop 70% of Saudi Arabia’s renewable energy target

Raad Al-Saady, Vice Chairman and Managing Director, ACWA Power, said: “Saudi Arabia is moving fast in its energy transition and we are proud to contribute as a key partner together with Badeel and Aramco. With these projects, we reach 35,000 MW of renewable capacity that we control worldwide, which combined with almost 20,000 MWh of storage capacity, make us one of the global leaders in the energy transition for reliable and affordable access to renewable energy at an unrivalled pace.”

Sultan AlNabulsi, Acting Chief Executive Officer, Badeel, said: “Badeel is proud to achieve this milestone for the new three solar PV projects, as an anchor sponsor under PIF to achieve its commitment to develop 70% of Saudi Arabia’s renewable energy by 2030. This comes as part of PIF’s continued efforts to progress towards unlocking the capabilities of promising sectors and achieving Saudi Arabia’s ambitions in renewable energy.”

With utilities and renewables one of PIF’s 13 strategic sectors, the Fund is focused on unlocking the capabilities of promising sectors and enabling the private sector to enhance Saudi Arabia’s efforts in diversifying the economy, in line with Vision 2030.