ACWA Power Secures $8.3 Billion Investment for 15 GW Renewable Energy Projects in Saudi Arabia

Landmark Financial Close for 15 GW Renewable Energy Portfolio

ACWA Power, a leading Saudi developer, investor, and operator of power generation, water desalination, and green hydrogen plants, has announced the successful financial close for a portfolio of seven large-scale renewable energy projects in Saudi Arabia. The projects, with a combined capacity of 15 gigawatts (GW), represent a total investment of approximately $8.3 billion (SAR 31.1 billion). This significant milestone was achieved in partnership with Water and Electricity Holding Co. (Badeel), a wholly-owned subsidiary of the Public Investment Fund (PIF), and Saudi Aramco Power Company (SAPCO).

Project Details and Consortium Structure

The extensive portfolio comprises five solar photovoltaic (PV) independent power plants and two wind power projects, strategically located across central, western, and southern regions of Saudi Arabia. The solar projects, totaling 12 GW, include:

• Afif 1 (2,000 MW)
• Afif 2 (2,000 MW)
• Al-Humaij (3,000 MW)
• Bisha (3,000 MW)
• Khulais (2,000 MW)

The two wind power plants, contributing 3 GW, are:

• Starah (2,000 MW)
• Shaqra (1,000 MW)

Each project company within this consortium sees ACWA Power holding a 35.1% effective share, while Badeel owns 34.9% and SAPCO holds the remaining 30%.

Comprehensive Financing and Lenders

The financing for these projects totals approximately $5.95 billion in senior debt, with the overall investment reaching around $8.3 billion. The wind projects alone secured approximately $1.45 billion (SAR 5.44 billion) in financing, while the solar PV projects received approximately $4.5 billion. A robust consortium of local, regional, and international banks provided the financing. Key lenders for the wind projects include Alinma Bank, Bank of China, China Minsheng Banking Corporation, Eurobank, Industrial and Commercial Bank of China, KfW IPEX-Bank, Mizuho Bank, Natixis, Société Générale, Standard Chartered, and Sumitomo Mitsui Trust Bank. For the solar projects, the consortium includes Ajman Bank, Al Masraf, Alinma Bank, Arab National Bank, China Construction Bank, China Minsheng Bank, Emirates NBD, Eurobank, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, KfW Development Bank, Mizuho, Piraeus Bank, Saudi Awwal Bank (SAB), Saudi National Bank (SNB), Standard Chartered, and Sumitomo Mitsui Trust Bank. The Saudi Power Procurement Company (SPPC) will serve as the principal off-taker for the power generated by these facilities.

Advancing Saudi Arabia's Renewable Energy Ambitions

These projects are a critical component of Saudi Arabia's National Renewable Energy Programme (NREP) and align directly with the Kingdom's ambitious Vision 2030 goals to diversify its energy mix and reduce reliance on fossil fuels. The Public Investment Fund (PIF), through its subsidiary Badeel, is mandated to develop 70% of Saudi Arabia's renewable energy capacity target by 2030. The power purchase agreements (PPAs) for these projects were signed in July, with commercial operations for some facilities, including the Starah wind IPP and the Al-Humaij and Bisha solar PV plants, expected to commence in Q1 2028. Overall commissioning for the seven projects is scheduled to begin between the second half of 2027 and the first half of 2028. Once operational, these 15 GW projects are projected to power 2.3 million homes, create 4,500 jobs, and cut 28 million tonnes of CO2 annually.