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ACWA Power and Partners Secure Financial Close on Solar Projects

Acwa Power, alongside Badeel and Saudi Aramco Power Co., has secured USD 3.2 billion in funding for solar projects in Saudi Arabia. The financing will support the Haden, Muwayh, and Al Khushaybi plants, with a total capacity of 5.5 GW, expected to begin commercial operations in Q1 2027.

October 02, 2024. By EI News Network

Saudi Arabia’s ACWA Power, along with the Public Investment Fund's (PIF) subsidiary Badeel and Saudi Aramco Power Company (SAPCO), has successfully secured financing totaling USD 3.2 billion (Dh11.5 billion) for solar power projects with a combined output capacity of 5.5 GW.

The financial closure covers the Haden, Muwayh, and Al Khushaybi projects. Most of the funding, amounting to USD 2.5 billion, has been obtained 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 Haden and Muwayh plants, each with a capacity of 2 GW, will be located in the Mecca region, while the 1.5 GW Al Khushaybi plant will be constructed in the Qassim region. Commercial operations for these projects are anticipated to commence in the first quarter of 2027.

Commenting on the development, Marco Arcelli, CEO of ACWA Power, stated: “We are thrilled to announce the successful financial close of these milestone projects, moving us closer to Saudi Arabia’s long-term ambitions. This closure underscores our commitment to delivering clean, consistent, and cost-effective energy.”

Sultan AlNabulsi, acting CEO of Badeel, emphasised the significance of these projects in bolstering Saudi Arabia’s renewable energy sector and aligning with PIF’s goal to develop 70 percent of the kingdom’s renewable energy by 2030.

Waleed Al Saif, Senior Vice President of New Energies at Saudi Aramco, highlighted the collaboration with ACWA Power and Badeel in advancing the Kingdom’s renewables sector to meet the growing power demand while reducing emissions.

In June, the state-owned Saudi Power Procurement Company (SPPC) signed power purchase agreements for all three projects, laying the groundwork for their development.

Acwa Power’s solar portfolio in Saudi Arabia currently includes 14 projects, boasting a total capacity exceeding 17.8 GW. Additionally, Saudi Arabia has announced the awarding of 21 renewable energy projects that will generate over 19 GW as part of its National Renewable Energy Programme.