PIF, ACWA Power sign $3.2bln Saudi solar projects deal

PIF, ACWA Power sign $3.2bln Saudi solar projects deal

Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund) has announced that its utility subsidiary - Water and Electricity Holding Company (Badeel), along with leading utility project developer Acwa Power have signed power purchase agreements (PPAs) for three major solar PV projects in the kingdom.

These PPAs have been signed with the Saudi Power Procurement Company (SPPC) for the development, and operation of three major solar PV Independent Power Producer (IPP) projects in Saudi Arabia.

The solar projects are part of the National Renewable Energy Program (NREP) which is led and supervised by the Ministry of Energy, with PIF mandated to develop 70% of NREP’s target capacity.

The new projects, which will be jointly owned by Badeel and Acwa Power, aims to produce a combined capacity of 4.55GWac of renewable energy, powering approximately 750,000 households.

The Ar Rass 2, Saad 2 and Al Kahfah projects have a capacity of 2,000MWac, 1,125MWac and 1,425MWac of renewable power respectively, with a combined value of SR12.2 billion ($3.25 billion).

According to PIF, the financial close for these projects is expected by the third quarter of 2023.

The Ministry of Energy aims to achieve the goals of Saudi Arabia’s Vision 2030 in reaching the optimal power generation energy mix by