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Acwa Power Shines With $3.2bn Solar Deal | |
| Sumita Pawar |
Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has signed power purchase agreements (PPAs) for three major solar PV projects in the country.
The solar projects are part of the National Renewable Energy Programme (NREP) and will be jointly owned by PIF's utility subsidiary, Water and Electricity Holding Company (Badeel), and leading utility project developer Acwa Power.
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PIF Head of Energy & Utilities Mohammed AlBalaihed said, "The three new solar projects are part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030, in line with the National Renewable Energy Programme."
"Renewable energy is one of PIF’s priority sectors, with a focus on unlocking the capabilities of promising sectors and enabling the private sector to enhance Saudi Arabia’s efforts in diversifying the economy," he noted.
The projects aim to produce a combined capacity of 4.55 GWac of renewable energy, powering approximately 750,000 households.
Acwa Power CEO Marco Arcelli said: "As a Saudi national champion, we are incredibly proud to lead Saudi Arabia’s ambitious energy diversification plans and contribute towards achieving its Net Zero targets. Today's signing of three PPAs marks a significant milestone for Acwa Power, representing the largest single transaction for solar projects in our company's history."
"This achievement illustrates our firm commitment to a sustainable future for Saudi Arabia and beyond, noted Arcelli.
By the third quarter of 2023, the projects should reach their financial close. PIF is currently developing five new projects at an investment of over $6 billion that will boast a cumulative capacity of 8 GW.