Riyadh - Sharikat Mubasher: Saudi Arabia’s Water and Electricity Holding Company (Badeel), wholly owned by the Public Investment Fund (PIF), ACWA Power, and Saudi Aramco Power Company (SAPCO) signed power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) to develop seven renewable energy projects across Saudi Arabia with investments amounting to SAR 31 billion (around $8.3 billion).
The new projects, which include five large-scale solar photovoltaic (solar PV) plants and two large-scale wind energy plants, aim to generate a combined capacity of 15,000 MW (12,000 MW solar PV and 3000 MW wind energy), the PIF unveiled in a statement today.
The projects will be jointly owned by Badeel, SAPCO, and ACWA Power, and will contribute an additional 15,000 MW of renewable energy to the national power grid once operational in the second half of 2027 and the first half of 2028.
Located in Asir, Madinah, Makkah, and Riyadh provinces, the seven renewable energy plants include Bisha (3000 MW solar PV), Humaij (3000 MW solar PV), Khulis (2000 MW solar PV), Afif1 (2000 MW solar PV), Afif2 (2000 MW solar PV), Starah (2000 MW Wind), and Shaqra (1000 MW wind).
Sultan AlNabulsi, Acting Chief Executive Officer at Badeel, affirmed that the agreements reflect Badeel's efforts and commitment to unlocking the potential of the renewable energy sector across the entire supply chain. “This investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy, and increasing the country’s investment attractiveness.”
For his part, Waleed Al Saif, Aramco SVP of New Energies, commented: “Through such investments, we aim to unlock additional value from Saudi Arabia’s abundant natural resources and grow Aramco’s New Energies portfolio. We look forward to bringing these projects online with our partners and remain convinced that all forms of energy have a role to play in a pragmatic energy transition.”
Meanwhile, Marco Arcelli, Chief Executive Officer at ACWA Power, stated that the agreements represent a significant milestone in Saudi Arabia's strategic vision for a more resilient and more sustainable energy landscape, underscoring the Kingdom’s steadfast commitment to achieving its ambitious renewable energy targets.
With the addition of these new projects, ACWA Power's solar and wind portfolio in Saudi Arabia now stands at 21 projects, representing more than 34 GW of combined renewable capacity. It also brings ACWA Power's total renewable capacity portfolio to 51.9 GW.