PIF subsidiary, ACWA Power invest US$3.25b in Saudi Arabia solar projects

The three solar projects seek to produce a combined capacity of 4.55GWac.

Public Investment Fund (PIF) wholly owned company Water and Electricity Holding Company (Badeel) and ACWA Power have invested some US$3.25b in three solar projects in Saudi Arabia.

The power purchase agreements were signed with the Saudi Power Procurement Company. The three new projects will form part of the National Renewable Energy Program, led by the Ministry of Energy.

“The three new solar projects are part of PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030, in line with the National Renewable Energy Program,” Mohammed AlBalaihed, Head of Energy & 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.”

These projects intend to produce a combined capacity of 4.55GWac of renewable energy, which could power approximately 750,000 households.

The Ar Rass 2, Saad 2 and Al Kahfah projects have a capacity of approximately 2,000MWac, 1,125MWac and 1,425MWac of renewable power respectively. It was noted that the financial close for these projects is expected by the third quarter of 2023.