Saudi Arabia’s Acwa Power and PIF to build region’s largest solar plant

Saudi Arabia’s Acwa Power and PIF to build region’s largest solar plant

A unit of Saudi Arabia’s Public Investment Fund and Acwa Power have signed agreements to develop a solar plant in Makkah with a total capacity of 2.1 gigawatts.

The facility, which is expected to begin commercial operations in the fourth quarter of 2025, will be the “largest of its kind in the Middle East”, the companies said in a statement on Wednesday.

The project will be jointly owned by Water and Electricity Holding Company (Badeel) and Acwa Power, with each holding a 50 per cent stake through a joint venture.

The newly-established venture — Shuaibah Two Electrical Energy Company — has signed a power purchase agreement with Saudi Power Procurement Company (SPPC) valued at $1.75 billion, Acwa Power said in a statement to the Saudi stock exchange Tadawul, where its shares are traded.

”This marks a key achievement toward PIF’s commitment to develop 70 per cent of Saudi Arabia’s renewable energy by 2030,” Yazeed Al Humied, deputy governor and head of Mena investments at PIF, said.

“Utilities and Renewables is one of PIF’s priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia’s efforts in diversifying revenue sources.”

Saudi Arabia is focusing heavily on renewable