A consortium led by Saudi Arabia’s ACWA Power, along with Water and Electricity Holding Company (Badeel) and Saudi Aramco Power Company (SAPCO), has secured a financial close on three major solar photovoltaic (PV) projects.
The Haden, Muwayh, and Al Khushaybi projects, valued at 12 billion Saudi riyals ($3.2 billion), will add a total of 5.5 gigawatts (GW) of renewable energy capacity to the Kingdom’s growing portfolio.
The projects are part of Saudi Arabia’s National Renewable Energy Program (NREP), which is aimed at achieving the country’s ambitious goal of generating 70% of its energy from renewable sources by 2030.
The program is overseen by the Ministry of Energy and is a cornerstone of the country’s broader energy transition strategy.
The projects will play a key role in meeting Saudi Arabia’s rising power demands while reducing carbon emissions.
The $2.5 billion senior debt financing for the projects was secured through a consortium of local, regional, and international banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered, Emirates NBD, First Abu Dhabi Bank, and HSBC.
The financial close is seen as a major step toward completing the projects, which are expected to come online in early 2027.
The solar projects are a joint venture between ACWA Power, a leading player in the renewable energy space; Badeel, a wholly-owned subsidiary of Saudi Arabia’s Public Investment Fund (PIF); and SAPCO, a subsidiary of Saudi Aramco.
The Saudi Power Procurement Company (SPPC) will act as the primary off-taker of the electricity generated from these plants, ensuring stable demand for the power produced.
Commenting on the financial close, Marco Arcelli, CEO of ACWA Power, said: “This milestone underscores our commitment to providing clean and cost-effective energy. The support from our stakeholders and financial partners has been instrumental in making this vision a reality.”
The Haden and Muwayh projects, each with a capacity of 2 GW, are located in the Makkah region, while the 1.5 GW Al Khushaybi project is based in the Qassim region.
Together, the solar PV plants will help reduce Saudi Arabia’s reliance on traditional fossil fuels and further cement the country’s leadership in renewable energy in the region.
Sultan Al-Nabulsi, acting CEO of Badeel, highlighted the importance of the projects, stating, “Reaching financial close on these projects is a significant step in our journey to support Saudi Arabia’s renewable energy sector. It also reinforces PIF’s commitment to developing 70% of the country’s renewable energy by 2030.”
The successful financial close of the solar projects comes as PIF and its partners continue to ramp up investments in renewable energy infrastructure. In July, PIF announced three new joint ventures to support the local production of wind turbine and solar PV components, aimed at positioning Saudi Arabia as a manufacturing hub for the renewable energy sector.
With the addition of these new projects, ACWA Power now operates 14 solar facilities across Saudi Arabia, totaling more than 17.8 GW of installed capacity.
Globally, ACWA Power’s renewable energy portfolio has reached 35 GW, further uplifting its role as a key player in the global energy transition.
Waleed Al-Saif, Senior VP of New Energies at Saudi Aramco, also expressed enthusiasm about the partnership, saying, “We are proud to extend our collaboration with ACWA Power and Badeel. Together, we are pushing forward the Kingdom’s renewable energy agenda, meeting the growing demand for power while reducing emissions.”
With Saudi Arabia pushing toward its 2030 vision, the country’s renewable energy sector is now set for rapid expansion.
PIF is actively developing several renewable energy projects with a total capacity of 13.6 GW and investments exceeding $9 billion. The projects, including Sudair, Shuaibah 2, Ar Rass 2, Al Kahfah, and Saad 2, are expected to significantly increase local supply chain participation and boost private sector development.
The Kingdom’s long-term plans also include diversifying its energy sources, with potential investments in geothermal and nuclear energy.
According to the Ministry of Energy, Saudi Arabia aims to reach an installed capacity of 52,481 MW by 2040, underscoring its commitment to energy security and sustainability.
The commercial operations for the Haden, Muwayh, and Al Khushaybi solar PV plants are set to begin in the first quarter of 2027.
