- ACWA Power has announced achieving financial closure for over 2.6 GW of solar capacity in Saudi Arabia
- The $1.63 billion financing came from several local, regional and international banks
- To be built for a total investment of $2.37 billion, these projects will come online in 2025
A consortium of local, regional and international banks has pooled in $1.63 billion in financing for over 2.6 GW of solar energy capacity being developed by ACWA Power and partners in Saudi Arabia in the form of Al Shuaibah PV 1 and Al Shuaibah PV 2 projects.
The 600 MW Al Shuaibah PV 1 and the 2.031 GW Al Shuaibah PV 2 projects together are estimated to cost a total investment of $2.37 billion.
Financing raised for the projects includes a $450 million Saudi Riyal denominated loan from the National Development Fund and a $1.8 billion US-dollar denominated commercial facility from Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank and Saudi Investment Bank.
Located in the Makkah province of Saudi Arabia, these facilities are scheduled to come online in 2025. ACWA Power is building these in partnership with the Public Investment Fund (PIF) held Water and Electricity Holding Company (Badeel), and Aramco’s Saudi Aramco Power Company (SAPCO).
The power generated by these projects is contracted by the Saudi Power Procurement Company (SPPC).
“Securing financing for this groundbreaking project marks a significant step towards achieving Saudi Arabia’s clean energy goals, in alignment with the National Renewable Energy Program, which aims to generate 50% of electricity from renewable sources by 2030,” said ACWA Power CEO Marco Arcelli.
ACWA Power says its total solar PV portfolio in Saudi Arabia now exceeds 12 GW of combined capacity, out of a 23.4 GW global renewable energy portfolio.