The Saudi energy company ACWA Power has secured SAR8.6bn (US$2.3bn) of debt financing for the construction of three large-scale solar projects totalling 4.5 GW in Saudi Arabia. ACWA Power secured project financing for the 2 GW Ar Raas-2, the 1.1 GW Saad-2 and the 1.4 GW Al-Kahfah solar PV Independent Power Plant (IPP) projects. The total investment cost for these three projects amounts to (SAR12.8bn) US$3.4bn.
The debt financing is provided by a consortium of local and international banks including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, Saudi Awwal Bank and HSBC for a period of 27.75 years. ACWA Power holds an effective 50.1% equity stake in each of the three projects while Badeel, a wholly owned company by the Public Investment Fund, owns remaining 49.9%.
Saudi Arabia's National Renewable Energy Program (NREP) targets 58.7 GW of renewable capacity in 2030, 40 GW of which from solar and 16 GW from wind (440 MW and 3 MW in 2022 respectively).
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