ACWA and Badeel will develop a 2,060 MW solar project in Saudi Arabia

The Saudi energy company ACWA Power and the Saudi Water and Electricity Holding Company (Badeel) have partnered to develop and build a 2,060 MW solar project in the Makkah province, western Saudi Arabia. The two companies will set up a joint venture named Shuaibah 2 Electrical Energy Company, in which each will hold a 50% equity stake, to own and operate the Shuaibah 2 solar project, which is expected to be completed by the fourth quarter of 2025. In addition, the Saudi Power Procurement Company (SPPC) has signed a power purchase agreement (PPA) with the joint venture to offtake the energy generated at the solar site.

ACWA Power is currently developing five other solar projects in Saudi Arabia, including the 700 MW Ar Rass solar PV power plant in the Al Qassim province, for which the company also signed a PPA with SPPC in March 2022. The group has already partnered for the 1,500 MW Sudair Solar PV project.

At the end of 2021, Saudi Arabia had 739 MW of installed solar capacity (less than 1% of the country’s total installed capacity). The country currently has 350 MW of solar projects under construction and 5.3 GW under development. Saudi Arabia still heavily relies on oil (48 GW) and on gas (41 GW) for its power generation.