ACWA partners on Saudi solar PPAs
- Offtake agreements will fund three PV projects, which will certainly be established with PIF subsidiary Badeel
The Water and also Power Holding Company (Badeel) and also ACWA Power have authorized PPAs with the Saudi Power Procurement Company (SPPC) for the development and procedure of three major new solar PV Independent Power Producer (IPP) projects in Saudi Arabia.
The solar plants become part of the National Renewable Energy Program (NREP) which is led and monitored by the Ministry of Energy, with Badell's owner PIF mandated to create 70% of NREP's target capacity.
The new projects will certainly be collectively possessed by Badeel as well as ACWA Power, a leading programmer, investor, as well as driver of power generation, water desalination and green hydrogen plants worldwide.
These websites plan to generate a combined capacity of 4.55 GWac of renewable energy, powering about 750,000 families.
The Ar Rass 2, Saad 2 as well as Al Kahfah projects have a capacity of about 2,000 MWac, 1,125 MWac and 1,425 MWac of eco-friendly power specifically, with a mixed value of SAR12.2 bn (US$ 3.25 bn).
Financial close for these growths is expected by the 3rd quarter of 2023.
The Ministry of Energy intends to achieve the objectives of Saudi Arabia's Vision 2030 within the ideal power generation energy mix by displacing fluid fuels via harnessing renewable energy sources.
The ministry aims to increase the share of renewables in the energy mix to around 50% by 2030 with the rest of the energy mix being provided with high efficiency gas-fueled power plants.