Saudi Arabia awards $3.25bn Solar PV Projects

Saudi Arabia awards $3.25bn Solar PV Projects

The Water and Electricity Holding Company (Badeel), a wholly-owned company of the Public Investment Fund (PIF), and ACWA Power announced the signing of power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for the development, and operation of three major new solar PV Independent Power Producer (IPP) projects in Saudi Arabia.

These projects intend to produce a combined capacity of 4.55GWac of renewable energy, powering approximately 750,000 households, with a combined value of SAR12.2 billion (US$3.25 billion). Financial close for these projects is expected by the third quarter of 2023. The Project are:

The Ar Rass 2 project having capacity of 2,000MWac

Saad 2 project having capacity of 1,125MWac

Al Kahfah project having a capacity of 1,425MWac

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 will be jointly owned by Badeel and ACWA Power, a leading developer, investor, and operator of power generation, water desalination and green hydrogen plants worldwide.

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