ACWA Power Signs PPAs with Principal Buyer for SAR 22.5 Bln

ACWA Power Company announced on Monday the signing of Power Purchase Agreements (PPAs) for five large-scale solar photovoltaic (PV) projects, namely Afif1, Afif2, Humaij, Bisha and Khulis, with the Saudi Power Procurement Company (SPPC), the principal buyer. These projects are located in the central, western and southern regions of the Kingdom of Saudi Arabia, with a production capacity of 2,000 MW, 2,000 MW, 3,000 MW, 3,000 MW and 2,000 MW, respectively.

The PPAs were signed by the project companies represented by Afif One Renewable Energy Company, Afif Two Renewable Energy Company, Humaij One Renewable Energy Company, Bisha One Renewable Energy Company and Khulis One Renewable Energy Company.

According to a statement published on the Saudi Exchange (Tadawul), the contract includes the development, financing, construction, ownership and operation of five photovoltaic (PV) solar power plants, for a period of 25 years for each project.

The Company explained that the financial impact will be determined upon the announcement of the completion of the financing contracts for each project.

Upon financial close, ACWA Power will hold a 35.1% stake in each of the five project companies, Badeel will hold a 34.9% stake, and Saudi Aramco Power Company will hold a 30% stake.

It is worth noting that Badeel, which is wholly owned by the Public Investment Fund, will be a partner in the five project companies with a 34.9% stake.

In the same context, ACWA Power announced the signing of PPAs for two large-scale wind energy projects in the Kingdom with the SPPC (the primary buyer). The first project is the 2,000 MW Starah (STR) Independent Power Plant (IPP), located in the central region of Saudi Arabia.

The second project is the 1,000 MW Shaqra (SHQ) Independent Power Plant (IPP), located in the central region of Saudi Arabia.

The PPAs were signed by the project companies: Starah First Renewable Energy Company and Shaqra First Renewable Energy Company. The project companies are owned by ACWA Power, Badeel and Saudi Aramco.

It is worth noting that ACWA Power holds a 35.1% stake, Badeel holds a 34.9% stake, and Saudi Aramco holds a 30% stake in each of the project companies.

According to a statement published on Tadawul, the contract includes the development, financing, construction, ownership and operation of two wind farms, valued at SAR 8.6 billion, for a period of 25 years for each project.

The Company stated that the financial impact will be determined upon the announcement of the completion of financing contracts for each project.

Badeel, a wholly owned subsidiary of the Public Investment Fund of the Kingdom of Saudi Arabia, will also be a partner in the project companies with a 34.9% stake