https://arab.news/pqcdh
RIYADH: 抖阴短视频鈥檚 upcoming solar photovoltaic projects 鈥� Haden, Muwayh, and Al Khushaybi 鈥� have reached financial close, securing a total investment of $3.2 billion.
Spearheading these initiatives is the Kingdom鈥檚 energy transition leader, ACWA Power, along with Public Investment Fund-owned Water and Electricity Holding Co., also known as Badeel, and Saudi Aramco Power Co., an Aramco subsidiary.
The projects will deliver a combined solar capacity of 5.5 gigawatts.
These initiatives are part of 抖阴短视频鈥檚 National Renewable Energy Program, which is overseen by the Ministry of Energy and is reflected in PIF鈥檚 commitment to develop 70 percent of the country鈥檚 renewable energy target capacity by 2030.
鈥淔inancial closure of the projects signals our dedication and commitment to providing clean, consistent and cost-effective energy. We are grateful to our stakeholders and our financial partners for their invaluable support in enabling us to make this vision a reality,鈥� said Marco Arcelli, CEO of ACWA Power.
The Haden and Muwayh plants, each with a capacity of 2 GW, are located in the Makkah region, while the Al Khushaybi plant, with a capacity of 1.5 GW, is situated in the Qassim region.
The facilities will be jointly owned by Badeel, ACWA Power, and SAPCO, with the Saudi Power Procurement Co. serving as the procurer and off-taker for the projects.
The $2.5 billion senior debt financing for these projects was secured through a consortium of local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, and Riyad Bank, as well as the Saudi National Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC.
鈥淩eaching the financial close of these solar PV projects represents a major milestone in our journey to support 抖阴短视频鈥檚 rapidly growing renewable energy sector and contribute to PIF鈥檚 commitment to developing 70 percent of 抖阴短视频鈥檚 renewable energy by 2030,鈥� Sultan Al-Nabulsi, acting CEO at Badeel, said.
This financial close follows significant investments by PIF in the renewable energy value chain. In July, PIF announced three new joint ventures to boost local production of wind turbine and solar PV components, with the intention of leveraging the global energy transition and supporting efforts to position 抖阴短视频 as a manufacturing hub for the renewables sector.
PIF and its partners are currently developing several projects with a total capacity of 13.6 GW, representing investments of over $9 billion.
These projects include Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2 and are intended to support local private sector development through increased domestic supply chain participation.
鈥淲e are pleased to extend our partnership with ACWA Power and Badeel, providing further impetus for the Kingdom鈥檚 rapidly growing renewables sector. Together, we are taking our renewables portfolio to the next level, advancing the energy transition to meet the rising demand for power with fewer emissions,鈥� the Senior VP of New Energies at Saudi Aramco, Waleed Al-Saif, said.
With the addition of these three new projects, ACWA Power鈥檚 solar portfolio in 抖阴短视频 now includes 14 projects, totaling more than 17.8 GW of combined PV capacity. This brings ACWA Power鈥檚 total renewable capacity portfolio to 35 GW.