Saudi Arabia closes SAR 12B financing for 3 solar PV projects

ACWA Power, Water and Electricity Holding Company (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF), and Saudi Aramco Power Co (SAPCO), a wholly-owned subsidiary of Saudi Aramco, announced today, Sept 29, the financial closure of three solar photovoltaic (PV) projects worth SAR 12 billion ($3.2 billion).

The projects align with the National Renewable Energy Program, overseen by the Ministry of Energy, and reflect the PIF’s commitment to developing 70% of Saudi Arabia’s targeted renewable energy capacity by 2030, according to a press release obtained by Argaam.

The projects, located in Makkah and Qassim, will have a total capacity of 5.5 gigawatts (GWs).

The Haden and Muwayh projects in Makkah will produce 2 GWs each of energy, while Al-Khushaybi in Qassim will produce 1.5 GWs for ACWA Power, Badeel, and SAPCO.

Commercial operations are expected to commence in the first quarter of 2027.

Saudi Power Procurement Co. (SPPC) will be the primary off-taker of the power generated from the projects.

Most of the funding, or SAR 9.4 billion ($2.5 billion), has been secured from a consortium of local, regional, and international banks, including Banque Saudi Fransi (BSF), Mizuho Bank, Riyad Bank, Saudi National Bank (SNB), Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank (FAB), and HSBC.

The PIF announced in July the launch of three new joint projects aimed at boosting the production of local wind turbines and PV solar components.

The move aligns with the PIF's broader strategy to position Saudi Arabia as a global renewable energy hub and capitalize on the worldwide shift towards cleaner energy sources.

The PIF and its partners have already invested over SAR 9 billion ($2.4 billion) in several energy projects undertaken by ACWA Power, Badeel, and SAPCO, at a combined capacity of 13.6 GWs. These projects are set to play a pivotal role in driving the Kingdom's energy transition.

The new joint projects are designed to foster private-sector participation in the Kingdom and stimulate local supply chains by leveraging domestic resources.

With this latest announcement, ACWA Power's solar energy portfolio has expanded to 14 projects, with a combined capacity exceeding 17.8 GWs. The company's total renewable energy portfolio now stands at 35 GWs.