ACWA Power and the Water and Electricity Holding Company (Badeel) have announced a 2.06 GW solar power project in Saudi Arabia calling it the 'largest' solar PV facility of its kind in the Middle East to date, for which they have now entered power purchase agreements with the Saudi Power Procurement Company (SPPC).
The Al Shuaibah 2 facility will be built, owned and operated by a special purpose entity Shuaibah Two Electrical Energy Company, to be jointly owned by both ACWA Power and Badeel in a 50:50 venture. Project partners expect to bring the solar power plant online by Q4/2025.
"This marks a key achievement toward PIF's commitment to develop 70% of Saudi Arabia's renewable energy by 2030. Utilities and Renewables is one of PIF's priority sectors as part of its domestic strategy, which focuses on unlocking the capabilities of promising sectors to enhance Saudi Arabia's efforts in diversifying revenue sources," said Deputy Governor and Head of MENA Investments at PIF, Yazeed A. Al-Humied. Badeel is a wholly owned subsidiary of the PIF.
ACWA Power calls this its 6th solar energy facility in Saudi Arabia. Along with Badeel it is also developing 1.5 GW Sudair Solar PV Project in the country. In June 2022, ACWA Power entered a PPA with SPPC for 91 MW Layla Solar Plant in the country (see Solar PPA Signed For 91 MW Saudi Project).
Saudi Arabia targets to have a cumulative installed solar PV capacity of 40 GW by 2030 as part of its National Renewable Energy Program (NREP), under which it tendered 3.3 GW wind and solar energy capacity in September 2022 (see Saudi Arabia Launches 3.3 GW Renewables Tender).
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