ACWA Power and partners to invest $8.3 billion in 15,000 MW renewable projects
Saudi Arabia has unveiled plans for a major renewable energy expansion worth approximately $8.3 billion, marking the kingdom's largest commitment to date under its National Renewable Energy Programme.
The ambitious initiative will see ACWA Power, Badeel, and Saudi Aramco Power Company (SAPCO) jointly develop seven new facilities across the kingdom, comprising five solar photovoltaic plants and two wind farms with a combined capacity of 15,000 megawatts.
The announcement was made in Riyadh on Sunday in the presence of the Minister of Energy, His Royal Highness, Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, with power purchase agreements signed with the Saudi Power Procurement Company as the off-taker for all projects.
The development forms a crucial component of Saudi Arabia's Vision 2030 diversification strategy, with the Public Investment Fund (PIF) committed to delivering 70% of the nation's renewable energy targets by 2030.
The seven facilities include the 3,000 MW Bisha solar plant in Asir province, the 3,000 MW Humaij solar installation in Madinah, and 2,000 MW projects at Khulis in Makkah province and two sites in Riyadh province at Afif1 and Afif2. Wind energy capacity will be provided by the 2,000 MW Starah facility and 1,000 MW Shaqra plant, both located in Riyadh province.
Construction is expected to begin following financial closure in the third quarter of 2025, with projects becoming operational between the second half of 2027 and first half of 2028.
ACWA Power's CEO Marco Arcelli described the agreement as "a significant milestone in Saudi Arabia's strategic vision for a more resilient and sustainable energy landscape", whilst Badeel's Acting CEO Sultan AlNabulsi emphasised that, "this investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy, and increasing the country’s investment attractiveness."
Aramco's Senior Vice President of New Energies, Waleed Al Saif, said the company was "delighted to expand our footprint in the renewables business" and highlighted how the partnership would help "build Saudi Arabia's renewable energy infrastructure"
The partnership builds upon existing collaborations between the three companies, which are currently sponsoring projects with a cumulative capacity of 28.6 GW involving over $17 billion in investments.
For ACWA Power, the additions bring its Saudi renewable portfolio to 21 projects representing more than 34 GW of combined capacity, whilst expanding its global renewable portfolio to 51.9 GW across 14 countries.
