Saudi Arabian power generator ACWA Power has achieved financial closure for the SAR1.2bn (US$320m) Sakaka 300 MW solar PV project in Al Jawf (Saudi Arabia) with its partner AlGihaz Holding Company. A new company will be set up to own and manage the project with ACWA Power holding 70% and AlGihaz 30% through its subsidiary AlGihaz Renewable Energy.
ACWA won the project in February 2018 under the framework of a bidding round with a low tariff of around US$2.34c/kWh compared with S$2.66ckWh for its main contender Marubeni Corporation. The US$320m project will be built under the framework of the renewable energy programme executed by state-run REPDO (Renewable Energy Project Development Office). The construction is slated to start shortly and the commissioning is scheduled for 2019. The project will be supported by a 25-year Power Purchase Agreement (PPA) with the Saudi Power Procurement Company (SPPC).