ACWA Power, Public Investment Fund (PIF) subsidiary Water and Electricity Holding Company (Badeel) and Saudi Arabian Oil Company subsidiary Saudi Aramco Power Company (SAPCO) have reached financial close for solar photovoltaic (PV) projects ) Al Shuaibah 1 and Al Shuaibah 2, which will generate an aggregate capacity of more than 2.6 gigawatts (GW) for Saudi Arabia.
The total investment in the power projects is set at $2.37 billion, with commercial operation expected in 2025. Located in Al Shuaibah in Makkah Province, Al Shuaibah PV 1 and Al Shuaibah PV 2 will have a capacity of 600 megawatts (MW) and 2,031 MW respectively, and are capable of powering approximately 450,000 homes, according to a statement from ACWA Power.
The financial closure of the projects is a key achievement of the National Renewable Energy Program (NREP), which is led and overseen by the Ministry of Energy of Saudi Arabia, and is a key achievement for PIF’s commitment to develop the 70 percent of the kingdom’s renewable energy target. capacity by 2030, the announcement said.
The Saudi Power Procurement Company (SPPC) is the purchaser and contractor for the projects, while the new projects will be jointly owned by Badeel with a 34.99 percent stake, ACWA Power with a 35.01 percent stake and SAPCO with 30 percent. interest, according to the report.
The $1.63 billion senior debt financing for this plant includes a $450 million Saudi riyal-denominated loan from the National Development Fund on behalf of the National Infrastructure Fund, as well as a commercial facility of 1,180 million dollars denominated in US dollars from a consortium of locals. , regional and international banks, he said.
“Achieving funding for this innovative project marks an important step towards achieving Saudi Arabia’s clean energy goals, in line with the National Renewable Energy Program, which aims to generate 50% of electricity from renewable sources by 2030,” said ACWA Power CEO Marco Arcelli. “We are truly proud of this milestone and look forward to working closely with our key partners PIF, Aramco and other collaborators to achieve a sustainable future.”
“Achieving financial close on the Al Shuaibah 1 and Al Shuaibah 2 solar PV projects marks an important milestone for Badeel and gives us the impetus to continue our efforts to support the continued growth of renewable energy in the Kingdom and contribute to the commitment of PIF to develop 70 percent of Saudi Arabia’s renewable energy by 2030, which will help unlock the capabilities of promising non-oil sectors to enhance Saudi Arabia’s efforts to diversify sources of ‘income and to enhance its leadership role in the renewable energy sector locally and globally”, Badeel CEO. Husam Al-Ghailani said.
“Our participation in the Al Shuaibah PV 1 and Al Shuaibah PV 2 projects aligns with our efforts to reduce Aramco’s carbon footprint and create a more sustainable future. While oil and gas will play an important role to meet today’s and tomorrow’s energy demand Renewables will play an increasingly important role in the energy transition to address the challenges of climate change The projects mark a significant milestone in supporting Aramco in achieving its decarburization targets,” said Aramco Downstream Chairman Mohammed Al Qahtani.
With the addition of these two projects, ACWA Power’s solar portfolio in Saudi Arabia now exceeds 12 GW of combined PV capacity. ACWA Power’s global portfolio of renewable energy capacity totals 23.4 GW, the statement said.
PIF, through Badeel and in partnership with ACWA Power as lead developer, is running a total of five NREP projects, with a cumulative capacity of eight GW and over $6 billion of investment from PIF and its partners, according to the statement.
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