Acwa Power Saudi projects mark a key achievement with an $8.2 billion financial close for 15 gigawatts (GW) of renewable energy capacity in Saudi Arabia. This deal advances the kingdom’s National Renewable Energy Program (NREP), led by the Ministry of Energy. Developers now secure funding to build five solar photovoltaic plants and two wind projects across central, western, and southern regions.
Project Details and Locations
The solar projects include Afif 1 and Afif 2, each at 2,000 MW, Humaij at 3,000 MW, Bisha at 3,000 MW, and Khulis at 2,000 MW. Wind facilities cover Starah and Shaqra in the central region. These sites span diverse terrains to capture optimal solar and wind resources, boosting overall efficiency.
Operations start in the second half of 2027 through the first half of 2028. The Saudi Power Procurement Company handles procurement and off-take agreements, ensuring stable revenue streams. This timeline aligns with Saudi Arabia’s goal to reach 70% renewable capacity by 2030 under Public Investment Fund commitments.
Ownership Structure and Partnerships
Acwa Power holds 35.1% effective shareholding in each project company, partnered with Badeel at 34.9% and Saudi Aramco Power Company (SAPCO) at 30%. Counterparties like Afif One Renewable Energy Company and Starah First Renewable Energy Company sign financing deals. This setup combines Acwa Power’s development expertise with Aramco’s energy resources and Badeel’s utilities strength.
Such collaborations drive large-scale execution. Acwa Power’s Saudi solar and wind portfolio now totals 21 projects over 34 GW, with global renewables at 51.9 GW. These partnerships reflect Saudi Arabia’s strategy to localize energy projects while attracting global know-how.
Financing Breakdown
A consortium of local, regional, and international banks provides $5.9 billion in senior debt financing, part of the $8.2 billion total investment (SAR 31 billion). Key lenders include Alinma Bank, Bank of China, China Minsheng Banking Corporation, Emirates NBD, First Abu Dhabi Bank, HSBC Middle East, Industrial and Commercial Bank of China, KfW IPEX, Mizuho, Natixis, Société Générale, Standard Chartered, and Sumitomo Mitsui Trust Bank. One package totals $1.45 billion over 27 years for development, construction, and operations.
This broad lender support underscores investor confidence in Saudi renewables. Funds cover design, building, and long-term operations, minimizing risks through proven bank structures.
Leadership Statements
Marco Arcelli, Acwa Power CEO, states that the close accelerates NREP goals and energy security. He notes job creation, supply chain growth, and Saudi talent training via technology transfer. Sultan AlNabulsi, Badeel, Acting CEO, calls it a milestone for their renewables platform and value creation.
Waleed Al Saif, Aramco SVP of New Energies, praises the giga-scale portfolio as a partnership model for net-zero aims. These projects rank among the Middle East’s largest, supporting economic diversification.
Broader Implications
Acwa Power Saudi projects enhance energy resilience with clean power. They create thousands of jobs, develop local industries, and build skills for Saudis. The deal propels Vision 2030 by reducing carbon reliance and fostering green growth.
Saudi Arabia positions itself as a renewables leader. This financial close sets precedents for future NREP rounds, drawing more investment to the Gulf.
