ACWA Power secures $2.6 billion for 5.5 GW of solar in Saudi Arabia

ACWA Power has landed SAR 9.7 billion ($2.6 billion) from a consortium of local, regional and international banks for the development, construction and operation of three solar plants in Saudi Arabia. It will build three facilities in Makkah and Qassim with capacities of 2 GW, 2 GW, and 1.5 GW.

Buraiq Renewable Energy Co., Moya Renewable Energy Co., and Nabah Renewable Energy Co. have signed the financing agreements. ACWA Power holds a 35.1% stake in each company, while Badeel, a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund, owns 34.9%. Saudi Aramco Power Co. holds the remainder.

The financing involves banks such as Banque Saudi Fransi, Emirates NBD, First Abu Dhabi Bank, HSBC, Mizuho Bank, Riyad Bank, Saudi National Bank, and Standard Chartered Bank. The agreements cover approximately 27.3 years, with ACWA Power’s guarantee limited to the bridge loan and reserve capital.

Saudi Arabia’s solar capacity stood at 2,285 MW at the end of 2023, according to figures from the International Renewable Energy Agency (IRENA). The country aims to source at least half of its electricity from renewable sources by the end of the decade.

In July, ACWA Power secured $533 million for Central Asia’s biggest battery storage project to date – a 200 MW solar plant and 500 MWh battery energy storage system in Uzbekistan.