Saudi Arabia: Financial closure achieved for 3 solar energy projects worth 12 billion riyals

ACWA Power, Badil, a wholly owned subsidiary of the Public Investment Fund, and Saudi Aramco Energy (SAPCO), a wholly owned subsidiary of Saudi Aramco, announced the financial closure of the Hadn, Al-Muwayh, and Al-Khashabi solar photovoltaic projects, with a total value of approximately 12 billion riyals ($3.2 billion), and a total capacity of approximately 5.5 gigawatts of renewable energy.

According to the company’s statement, these projects fall under the umbrella of the National Renewable Energy Program, which is supervised by the Ministry of Energy, and is reflected in the Public Investment Fund’s commitment to developing 70% of the Kingdom’s targeted renewable energy capacity by 2030.

The Hadn and Al-Muwaih projects in Makkah Al-Mukarramah, and Al-Khushaibi projects in Qassim, which have a capacity to produce 2 GW, 2 GW and 1.5 GW of renewable energy respectively, will be jointly owned by ACWA Power, Badil and SABCO, and the commercial operation of these three projects is scheduled to begin in the first quarter of 2027.

Financing from local and regional banks

The Saudi Power Procurement Company is the main buyer of the energy produced from the Hadn, Al-Muwaih and Al-Khushaibi projects, for which the main financing of SAR 9.4 billion ($2.5 billion) was provided by a consortium of local, regional and international banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, National Commercial Bank of Saudi Arabia, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank and HSBC.

Marco Arcelli, CEO of ACWA Power, said: “We are delighted to announce the successful financial close of these important projects, which bring us one step closer to realizing the Kingdom of Saudi Arabia’s long-term ambitions.”

He added: “Today’s achievement demonstrates our dedication and commitment to delivering clean, efficient energy at the lowest possible cost. We are grateful to our shareholders and financial partners for their invaluable support that has enabled us to make this vision a reality.”

Sultan Al Nabulsi, Acting CEO of Water and Electricity Holding Company (Badil), said: “Achieving financial close on our solar PV projects represents an important step in our journey to support the rapidly growing renewable energy sector in Saudi Arabia, and contribute to the Public Investment Fund’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030.”

He added: “We look forward to continuing our joint efforts in building a greener and more sustainable future for the Kingdom of Saudi Arabia.”

“We are pleased to expand our partnership today with ACWA Power and Badil through our subsidiary SAPCO, to support the Kingdom’s rapidly growing renewable energy sector,” said Waleed Al-Saif, Senior Vice President of New Energies at Saudi Aramco.

Total projects reach 5.5 GW of renewable energy (today)Total projects reach 5.5 GW of renewable energy.

He added: “Together, we are taking our renewable energy portfolio to the next level and driving the energy transformation we are witnessing to meet the growing demand for energy with lower emissions.”

He continued: “Through our newly established energy ecosystem, Saudi Aramco aims to support the growth of alternative energy solutions including renewable energy, carbon capture and storage, and the low-carbon hydrogen industry.”

Last July, the Public Investment Fund announced three new joint projects that will enhance local wind turbines, solar photovoltaic components, and benefit from the global energy transition and support the Public Investment Fund’s efforts to position the Kingdom of Saudi Arabia as a global hub for the renewable energy sector.

It is worth noting that “ACWA Power”, “Badil” and “Sabco” are currently developing several energy projects, with a total production capacity of 13.6 gigawatts, and investments exceeding $9 billion (about 2.4 billion riyals) from the Public Investment Fund and its partners.

These joint projects, which also include “Sudair, Shuaiba 2, Ar Rass 2, Al Kahfah, and Saad 2”, aim to enhance private sector participation in the Kingdom, noting that they also contribute to stimulating the local supply chain through their significant requirements to benefit from local resources.

With this announcement, ACWA Power’s portfolio of solar energy projects has increased to 14 projects, with a combined production capacity of more than 17.8 GW of solar photovoltaic energy, while the current production capacity of ACWA Power’s renewable energy projects portfolio stands at 35 GW.