ACWA Power Boosts Saudi Solar Capacity by 2.79 GW

• ACWA Power energizes Saudi Arabia's solar future with 2.79 GW boost, advancing clean energy goals and freeing hydrocarbons for export.

ACWA Power has achieved a significant milestone in Saudi Arabia's solar energy expansion by obtaining commercial-operation certificates for three major photovoltaic (PV) projects, adding 2.79 GW to the national grid. The projects include Ar Rass 2 in Qassim, SAAD 2, and the Al Kahfa project in Hail. Ar Rass 2 received certification for 1 GW of its 2-GW capacity, SAAD 2 reached its full 1,125-MW capacity, and Al Kahfa was certified for its full 1,425-MW capacity. ACWA Power holds a 50.1% stake in each project, which are designed to withstand harsh desert conditions.

These developments come as Saudi Arabia intensifies its clean energy initiatives. In July, the Saudi Power Procurement Company signed seven renewable power purchase agreements (PPAs) with ACWA-led consortia, five of which are solar, totaling 15 GW. ACWA Power has also secured $2.6 billion in financing for a separate 5.5-GW solar tranche. The focus now shifts to operational ramp-up, including grid-code tuning and maintenance strategies. These projects are expected to significantly boost Saudi Arabia's installed PV capacity by 2025–2026, supporting the kingdom's climate and economic objectives by freeing hydrocarbons for export.

How will ACWA Power's new PV projects impact Saudi Arabia's solar energy goals?

• Increased Solar Capacity: The addition of 2.79 GW from ACWA Power's projects significantly boosts Saudi Arabia's solar capacity, aligning with the country's Vision 2030 goals to diversify energy sources and reduce reliance on oil.
• Economic Diversification: By expanding its solar energy infrastructure, Saudi Arabia can reduce domestic oil consumption, allowing more hydrocarbons to be exported, thus enhancing economic diversification and revenue streams.
• Job Creation: The development and operation of these large-scale solar projects are likely to create numerous jobs in construction, maintenance, and operations, contributing to local employment and skill development.
• Technological Advancement: The projects incorporate advanced PV technology designed to withstand harsh desert conditions, positioning Saudi Arabia as a leader in solar technology adaptation and innovation.
• Environmental Impact: By increasing its renewable energy capacity, Saudi Arabia can significantly reduce its carbon footprint, contributing to global climate change mitigation efforts and improving air quality.
• Energy Security: Diversifying energy sources enhances Saudi Arabia's energy security, reducing vulnerability to oil market fluctuations and ensuring a stable, sustainable energy supply.
• Regional Leadership: Successful implementation of these projects positions Saudi Arabia as a leader in renewable energy within the Middle East, potentially influencing neighboring countries to adopt similar initiatives.
• Investment Attraction: Demonstrating commitment to renewable energy can attract further international investment in Saudi Arabia's energy sector, fostering economic growth and technological partnerships.