A consortium consisting of Saudi-listed ACWA Power, the Water and Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and Saudi Aramco Power Company (SAPCO), a subsidiary of Aramco, has achieved financial close for 5.5 gigawatts (GW) solar PV projects valued at 12 billion Saudi riyals ($3.2 billion).
The majority of the SAR 9.4 billion funding was secured from a group of local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, National Commercial Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC, according to a statement by ACWA Power.
The Saudi Power Procurement Company (SPPC) will be the primary off-taker of electricity generated by the three solar projects.
Two projects, the 2 GW Haden and 1.5 GW Muwayh will be located in the Makkah region, while the 2 GW Al-Khushaybi project will be in the Qassim region.
Commercial operations are expected to commence in the first quarter of 2027. In June, ACWA Power signed power purchase agreements (PPAs) worth SAR 12.3 billion to develop, implement, and operate these major solar PV projects.
Saudi Arabia is positioning itself as a key player in the global renewable energy sector with a bold goal of generating 50% of its electricity from renewables by 2030. This ambitious plan includes significant investments in solar energy, capitalizing on the country’s abundant sunlight.
By 2030, Saudi Arabia aims to produce 58.7 gigawatts (GW) of renewable energy, comprising 40 GW from solar photovoltaics (PV), 16 GW from wind, and 2.7 GW from concentrated solar power.
As part of its Vision 2030, the Kingdom’s solar manufacturing initiative is a critical effort to diversify its economy and energy sector away from oil dependence. Saudi Arabia is steadily advancing its solar power capacity through multiple projects nationwide.
Saudi Arabia’s strategic location at the crossroads of Europe, Africa, and Asia offers a logistical advantage, providing close access to key markets and supporting the diversification of the global solar supply chain. As the Kingdom expands its solar manufacturing sector, it presents a cost-effective production base with improved export routes, making it an attractive destination for international investors.
This diversification could create alternative sourcing options beyond traditional hubs like China and Germany, helping to reduce supply chain risks.
