The combined capacity of the projects is 4.55 GWac, and they bring electricity to approximately 750,000 households. The mission of the public investment fund is to develop 70 percent of Saudi Arabia’s target renewable energy capacity by 2030.
The solar projects are part of the Ministry of Energy’s National Renewable Energy Program (NREP), where PIF is authorized to develop 70% of the initiative’s target capacity. Badeel and ACWA Power, a leading developer, investor and operator of power generation, water desalination and green hydrogen plants, jointly own the new projects with a combined value of SAR 12.2 billion ($3.25 billion).
its combined value is SAR 12.2 billion ($3.25 billion). The financing of these projects is expected to be completed by the third quarter of 2023.
The Ar Rass 2, Saad 2 and Al Kahfah projects have capacity levels of approximately 2,000 MWac, 1,125 MWac and 1,425 MWac, respectively, and are used to power approximately 750,000 households.
The companies are waiting for the financial conclusion of the projects by the third quarter of 2023.
The Ministry of Energy’s goal is to increase the share of renewable energy sources in the energy mix to around 50 percent by 2030, with the rest supplied through efficient gas-fired power plants.
PIF is currently developing a total of five projects with a cumulative capacity of 8 GW and more than $6 billion in investments from its own and partner funding. According to the company, the goal is to enable and support the local private sector by demanding a significant contribution of local content and by procuring equipment, supplies and services through local supply chains.
“The three new solar projects are part of PIF’s commitment to develop 70 percent of Saudi Arabia’s renewable energy by 2030 under the National Renewable Energy Program,” said Mohammed AlBalaihed, PIF’s Head of Energy & Utilities. “Renewable energy is one of PIF’s priority areas, focusing on unlocking the potential of promising sectors and enabling the private sector to boost Saudi Arabia’s efforts to diversify its economy.”
ACWA Power CEO Marco Arcelli added: “As Saudi Arabia’s national champion, we are incredibly proud to lead Saudi Arabia’s ambitious energy diversification plans and contribute to its net zero goals. Today’s signing of three PPAs is a significant milestone for ACWA Power, the largest single solar project deal in our company’s history. This the achievement illustrates our firm commitment to a sustainable future in Saudi Arabia and beyond.”
ACWA Power’s portfolio of solar projects in Saudi Arabia now stands at 11 with a combined PV capacity of over 12 GW, including three new projects, bringing the Group’s total renewable energy capacity portfolio to 23.4 GW.