Saudi Arabia’s Renewable Energy Sector Gets USD3.25B Boost with New Solar Projects – EQ Mag
Saudi Arabia’s renewable energy sector is poised for a momentous advancement following the signing of a power purchase agreement between Saudi Power Procurement Co., Badeel (owned by the Public Investment Fund), and ACWA Power. This agreement paves the way for the development of three new solar energy projects, signaling a substantial boost for the Kingdom’s clean energy aspirations.
With a combined investment of approximately USD3.25 billion (SR12.2 billion), these independent power projects aim to generate a total capacity of 4.55 gigawatts, effectively supplying sustainable electricity to around 750,000 households. The financial close for these ventures is anticipated to take place in the third quarter of 2023, marking an important milestone in the progression of Saudi Arabia’s renewable energy ambitions.
The three projects, namely Ar Rass 2, Saad 2, and Al Kahfah, are specifically designed to contribute significantly to the renewable power landscape. Ar Rass 2 boasts a capacity of approximately 2,000 megawatts of alternating current (MWac), while Saad 2 and Al Kahfah offer 1,125 MWac and 1,425 MWac of renewable power, respectively.
ACWA Power’s CEO, Marco Arcelli, expressed the significance of this milestone, highlighting the magnitude of the transaction as the largest ever for solar projects undertaken by the company. Arcelli emphasized ACWA Power’s unwavering commitment to a sustainable future, not only for Saudi Arabia but also for broader global sustainability efforts.
These solar initiatives align with the National Renewable Energy Program (NREP), an initiative overseen by the Ministry of Energy. The Public Investment Fund has been entrusted with establishing 70 percent of the NREP’s targeted capacity, underlining the pivotal role of the Saudi government’s investment arm in driving the nation’s renewable energy transition.