Saudi ACWA Power signs PPA valued at $1.75bln with SPCC

Saudi ACWA Power signs PPA valued at $1.75bln with SPCC

Saudi Arabian utility developer ACWA Power has signed a power purchase agreement (PPA) valued at $1.75 billion with Saudi Power Procurement Co. (SPPC) for the largest solar plant in the MENA region in which the Saudi wealth fund, Public Investment Fund (PIF), will be a partner.

ACWA's project company, Shuaibah 2 Electrical Energy Co., in which PIF will hold a 50% stake, will develop, finance, build, own and operate the 2060 MW PV solar energy plant, the company said in a statement on Wednesday on the Saudi Stock Exchange (Tadawul).

The contract duration is 25 years, and the financial impact of the contracted revenues is expected to be effective after commercial operations begin by Q4 2025.

The Saudi Power Procurement Co., which was fully nationalised earlier this year with the ministries of finance and energy fully acquiring its shares, is responsible for forward planning for power requirement and generation, and for initiating power projects.

(Reporting by Brinda Darasha; editing by Seban Scaria)

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