ACWA Power Company announces the signing of the power purchase agreements (PPA) for Seven Renewable Energy Projects.
The Company stated that it has signed the agreements for Five large-scale PV solar plants, namely Afif1, Afif2, Humaij, Bisha and Khulis, located in the central, western and southern regions of Saudi Arabia with production capacities of 2,000MW, 2,000MW, 3,000MW, 3,000MW and 2,000MW of renewable power, respectively with Saudi Power Procurement Company (SPPC).
The value of the agreement is SAR 22.5 billion.
The Agreements was entered by the project companies: Afif One Renewable Energy Company, Afif Two Renewable Energy Company, Humaij One Renewable Energy Company, Bisha One Renewable Energy Company and Khulis One Renewable Energy Company.
In another statement, Company stated that it has signed the power purchase agreements for two large-scale wind power plants, namely:
1. Starah (STR), located in the central region of Saudi Arabia with a production capacity of 2,000MW.
2. Shaqra (SHQ), located in the central region of Saudi Arabia with a production capacity of 1,000MW.
The value of the agreement is SAR 8.6 billion.
Starah First Renewable Energy Company and Shaqra First Renewable Energy Company signed the Power Purchase agreements, all of which will be owned by ACWA Power Company, Badeel and Saudi Aramco Power Company
ACWA Power’s effective shareholding in each of the project companies is 35.1% while Badeel’s share is 34.9% and Saudi Aramco Power Company share is 30%.
Project Scope includes Development, financing, construction, ownership and operation of 5 Solar PV Power Projects and two wind Projects.
The projects will contribute an additional 15,000 MW of renewable energy to the national power grid once operational in the second half of 2027 and first half of 2028. Financial closes are expected by the third quarter of 2025.
Badeel, ACWA Power and SAPCO are currently sponsoring several projects, including the new projects with a total cumulative capacity of 28.6 GW, involving over $17 billion (SAR 63.75 billion) in investments. These joint projects, which also include Haden, Muwayh, Al Khushaybi, Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah and Saad 2, are intended to enable and support the local private sector through domestic supply chain participation.
Aramco is actively developing a renewables portfolio to reduce greenhouse gas emissions from its operations and enhance long-term business value, aligning with its net-zero ambitions.
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.
