Arab News, Monday, May 22, 2023 | Thul-Qidah 2, 1444
PIF’s Badeel, ACWA Power sign deal for 3 solar projects
Saudi Arabia:
Saudi Arabia’s renewable energy sector is set to receive a significant boost as
the Kingdom’s principal buyer Saudi Power Procurement Co. signed a power
purchase agreement with the Public Investment Fund-owned Badeel and ACWA Power
for three new solar energy projects.
These three independent power projects, which
will be built at a cost of SR12.2 billion ($3.25 billion), intend to produce
a combined capacity of 4.55 gigawatts, powering approximately 750,000
households.
The financial close for these projects is expected
by the third quarter of 2023.
The projects Ar Rass 2, Saad 2 and Al Kahfah have
a capacity of approximately 2,000 megawatts of alternating current, 1,125 MWac,
and 1,425 MWac of renewable power, respectively.
“Today’s signing of three power purchase
agreements marks a significant milestone for ACWA Power, representing the
largest single transaction for solar projects in our company’s history. This
achievement illustrates our firm commitment to a sustainable future for Saudi
Arabia and beyond,” ACWA Power CEO Marco Arcelli said.
The solar initiatives fall under the umbrella of
the National Renewable Energy Program, a scheme overseen by the Ministry of
Energy. The PIF has been assigned to establish 70 percent of NREP’s target
capacity.
Aligned with the Kingdom’s Vision 2030 initiative,
the Ministry of Energy aims to displace liquid fuels by harnessing renewable
energy sources. The ministry aims to increase the share of renewables by 50
percent of the energy mix by 2030.
The wealth fund is currently developing a total of
five projects, with a cumulative capacity of 8 GW and over $6 billion of
investment from the fund and its partners.
“The three new solar projects are part of PIF’s
commitment to developing 70 percent of Saudi Arabia’s renewable energy by 2030,
in line with the National Renewable Energy Program,” Mohammed Al-Balaihed, head
of energy and utilities at PIF, said.
“Renewable energy is one of PIF’s priority
sectors, with a focus on unlocking the capabilities of promising sectors and
enabling the private sector to enhance Saudi Arabia’s efforts in diversifying
the economy,” Al-Balaihed added.