Saudi Arabia is taking a significant leap towards its renewable energy goals with the signing of Power Purchase Agreements (PPAs) for three colossal solar photovoltaic (PV) projects. ACWA Power, a leading developer and operator of power plants, joined forces with Badeel, a subsidiary of the Public Investment Fund (PIF), and SAPCO, a subsidiary of Saudi Aramco, to ink these landmark deals with the Saudi Power Procurement Company (SPPC). The agreements were signed under the watchful eye of Prince AbdulAziz bin Salman bin AbdulAziz Al Saud, the Kingdom’s Minister of Energy, highlighting the government’s commitment to this ambitious renewable energy push.
These three projects, dubbed Haden, Muwayh, and Al Khushaybi, will significantly bolster Saudi Arabia’s solar energy capacity. Haden and Muwayh, situated in the Makkah region, will boast a staggering 2, 000 MW capacity each, while Al Khushaybi, located in the Qassim region, will contribute 1, 500 MW to the national grid. With a combined capacity of 5. 5 GW, these solar giants are projected to play a pivotal role in diversifying the Kingdom’s energy mix and reducing its dependence on fossil fuels.
The signing of these PPAs marks a significant milestone for Saudi Arabia’s National Renewable Energy Program (NREP), spearheaded by the Ministry of Energy. PIF, as a key player in NREP, has pledged to develop 70% of the program’s targeted capacity. Badeel, acting as an anchor sponsor under PIF, is fulfilling this commitment with its participation in these projects.
ACWA Power, a company already boasting a substantial portfolio of solar projects in Saudi Arabia, has further solidified its position as a leader in the renewable energy sector. With the addition of these three mega-projects, ACWA Power’s solar capacity in the Kingdom reaches a remarkable 17, 800 MW, pushing its global renewable energy portfolio to a staggering 35, 000 MW.
Financial closure for these projects is anticipated by the fourth quarter of 2024, paving the way for construction to begin. Once operational, these solar giants are not only expected to generate clean and sustainable energy but also contribute to job creation and economic growth in the region.
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