Saudi Arabia’s ACWA Power and the Saudi Public Investment Fund (PIF) have signed an agreement for the development and operation of three new solar PV projects in Saudi Arabia totalling a capacity of 4.55 GW. Power purchase agreements (PPAs) for the projects were signed with the Saudi Power Procurement Company (SPPC).
The solar projects will be jointly owned by ACWA and Badeel, a wholly owned subsidiary of the PIF. They include the 2,000 MW Ar Rass 2 project, the 1,125 MW Saad 2 project and the 1,425 MW Al Kahfah project. The projects, which will provide enough power for about 750,000 Saudi households, are estimated to require a total investment of SAR12.2bn (US$3.3bn). Financial close for the projects is expected by the third quarter of 2023.
The three new solar projects are part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030, in line with the country’s National Renewable Energy Program. In addition to these projects, PIF is also developing the 1.5 GW Sudair solar project and the 2 GW Shuaibah 2 solar project. The five projects under development aim to add 8 GW of generation capacity to support Saudi Arabia's ambition to increase the share of renewables in the energy mix to around 50% by 2030. As for ACWA Power, its portfolio of solar projects in Saudi Arabia now stands at 11, with over 12 GW of combined solar PV capacity.
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