ACWA Power secures $2.6 billion for 5.5 GW of solar energy in Saudi Arabia – SPE

ACWA Power has secured SAR 9.7 billion ($2.6 billion) from a consortium of local, regional and international banks to develop, build and operate three solar power plants in Saudi Arabia. It will build three facilities in Mecca and Qassim with capacities of 2 GW, 2 GW and 1.5 GW.

Buraiq Renewable Energy Co., Moya Renewable Energy Co. and Nabah Renewable Energy Co. have signed the financing agreements. ACWA Power has a 35.1% stake in each company, while Badeel, a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund, owns 34.9%. Saudi Aramco Power Co. owns the rest.

The financing involves banks such as Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, Saudi National Bank and Standard Chartered Bank. The agreements have a term of approximately 27.3 years, with ACWA Power’s guarantee limited to the bridging loan and the reserve capital.

According to figures from the International Renewable Energy Agency (IRENA), Saudi Arabia’s solar capacity stood at 2,285 MW at the end of 2023. The country aims to generate at least half of its electricity from renewable sources by the end of this decade.

In July, ACWA Power secured $533 million for the largest battery storage project to date in Central Asia: a 200 MW solar power plant and a 500 MWh battery energy storage system in Uzbekistan.