- These ACWA Power projects support Saudi Arabia’s goal to produce 130 GW of green energy by 2030, aiming for 50% renewable electricity by the decade’s end.
- ACWA Power plans a $7.12 billion capital raise to triple operations by 2030, following a 35.46% profit increase in the first half of 2024.
ACWA Power secured SR9.7 billion ($2.58 billion) in financing to develop three large-scale solar projects in Saudi Arabia. The Haden, Muwyah, and Al-Khushaybi projects within the Makkah and Qassim provinces will add 5,500 megawatts (MW) capacity. Haden and Muwyah will each produce 2,000 MW, while Al-Khushaybi will generate 1,500 MW.
Buraiq Renewable Energy Co., Moya Renewable Energy Co., and Nabah Renewable Energy Co. signed the financing agreements. ACWA Power, Badeel (a PIF subsidiary), and Saudi Aramco Power Co. jointly own these companies. ACWA Power holds a 35.1% stake, and Badeel owns 34.9%.
This deal strengthens Saudi Arabia’s role in renewable energy. The Kingdom aims to generate 130 gigawatts (GW) of green energy by 2030. Saudi Arabia continues to invest heavily in diversifying its energy mix to reduce carbon emissions and boost sustainable development. By the decade’s end, the Kingdom plans to source at least 50% of its electricity from renewables.
A consortium of banks provided the financing, including Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, Saudi National Bank, and Standard Chartered Bank. The funding term spans 27.3 years. ACWA Power’s exposure remains limited to its equity bridge loan and standby equity.
As a critical player in Saudi Arabia’s primary market, ACWA Power drives the Kingdom’s green energy initiatives and continues to expand globally, targeting high-growth markets.
In a separate announcement, ACWA Power revealed plans for a $7.12 billion capital raise, with Citigroup Saudi Arabia, SNB Capital, and J.P. Morgan Saudi Arabia serving as financial advisers. This capital increase will support the company’s growth strategy, which aims to triple operations by 2030.
ACWA Power’s new solar projects significantly influence Saudi Arabia’s broader push to lead in renewable energy. The Kingdom’s commitment to clean energy aligns with its Vision 2030 goals to reduce reliance on oil and promote sustainable growth.
The solar projects in Haden, Muwyah, and Al-Khushaybi will help Saudi Arabia meet its renewable energy targets. The financing deal underscores local and international banks’ confidence in the Kingdom’s renewable energy ambitions.
With this latest development, ACWA Power cements its position as a leader in the renewable energy sector in Saudi Arabia and globally. The company’s strategic growth plans and ongoing projects highlight its commitment to supporting Saudi Arabia’s transition to a sustainable energy future.