- ACWA Power and Badeel have signed PPAs with SPPC for 4.55 GW AC solar capacity in Saudi Arabia
- It will be established as 3 utility scale projects of 2 GW AC, 1.125 GW AC and 1.425 GW AC
- These represent a total value of SAR 12.2 billion; financial close its expected in Q3/2023
Saudi Arabia Procurement Company (SPPC) has turned offtaker for 3 utility scale solar power plants representing 4.55 GW AC capacity under power purchase agreements (PPA) signed with ACWA Power and the Water and Electricity Holding Company (Badeel).
A wholly owned subsidiary of the Public Investment Fund (PIF), Badeel and ACWA Power will jointly own the projects that they will develop and operate.
The Ar Rass 2 project will have close to 2 GW AC capacity, Saad 2 will be 1.125 GW AC strong while Al Kahfah facility will have 1.425 GW AC capacity. All 3 projects represent a combined value of SAR 12.2 billion ($3.25 billion). On completion, these are expected to generate enough clean power for close to 750,000 households.
Financial close on the projects is expected by Q3/2023, said ACWA Power that calls it the largest single transaction for solar projects in the company’s history. With this PPA, the management says its solar power portfolio in Saudi Arabia now stands at 12 GW with 11 projects in total. Altogether, its total renewable capacity portfolio stands at 23.4 GW.
ACWA Power said it will use the most advanced PV technology and innovative design for the 3 projects to ensure highest efficiency, reliability and performance. In December 2022, it signed strategic partnerships with 9 Chinese companies across finance, EPC and other functions. It includes solar module makers JinkoSolar and Jolywood and inverter supplier Sungrow (see Chinese Money Flow For ACWA Power’s Projects).
PIF is mandated to develop 70% of the targeted renewable energy capacity in Saudi Arabia by 2030 under the National Renewable Energy Program (NREP). It is currently developing 8 GW renewable energy projects.