ACWA Power, the leading Saudi Arabian renewable energy developer, has announced the start of commercial operations at the Al Shuaibah 1 solar photovoltaic (PV) power plant, a 600-megawatt (MW) facility expected to have a substantial impact on the region’s renewable energy future.
The company confirmed in a statement to the Saudi stock exchange that it has received the commercial operation certificate from the Saudi Power Procurement Company (SPPC), making Al Shuaibah 1 one of the country’s largest solar projects to reach this milestone.
ACWA Power anticipates that the financial effects of the plant’s operations will be visible in its fourth-quarter earnings for 2024.
This project is a key step in Saudi Arabia’s broader strategy to diversify its energy portfolio and reduce its reliance on fossil fuels.
In alignment with the Saudi Vision 2030 initiative, which seeks to increase the share of renewables in the national energy mix, the Al Shuaibah project is part of the government’s ambitious goal of achieving 50% renewable energy capacity by 2030.
The Al Shuaibah 1 solar project is part of a larger complex involving Al Shuaibah 1 and 2 Independent Water and Power Projects (IWPPs). The two projects, which together have a total capacity of over 2.6 gigawatts (GW), reached financial closure in August 2023, backed by a consortium comprising ACWA Power, Water and Electricity Holding Company (Badeel), and Saudi Aramco.
The ownership structure for both projects includes ACWA Power holding 35.01%, Badeel with 34.99%, and Aramco holding a 30% stake, underscoring strong domestic support for Saudi Arabia’s transition toward sustainable energy.
SPPC, the primary entity responsible for procuring power from these projects, plays a crucial role in Saudi Arabia’s push to adopt renewable energy. By engaging private sector leaders like ACWA Power and leveraging public-private partnerships, SPPC aims to expand Saudi Arabia’s clean energy capacity, fostering energy security and sustainability.
ACWA Power has been a major player in advancing renewable energy projects across the Middle East and beyond, with a growing portfolio that includes solar, wind, and green hydrogen initiatives.
The successful commissioning of Al Shuaibah 1 further strengthens ACWA Power’s reputation as a leader in utility-scale renewable energy development and reflects the company’s commitment to supporting Saudi Arabia’s energy transition goals.
The Al Shuaibah 1 solar plant not only adds to Saudi Arabia’s renewable energy capacity but also reinforces the country’s position as a key contributor to global efforts to reduce carbon emissions and combat climate change.
