ACWA Power Launches 2-GW Solar Park in Saudi Arabia

• ACWA Power launches Al Shuaibah 2 solar plant in Saudi Arabia, adding over 2 GW to its renewable energy portfolio and marking a significant milestone in sustainable power.

ACWA Power has announced the commencement of commercial operations at the Al Shuaibah 2 solar photovoltaic plant in Saudi Arabia, boasting a capacity of over 2 GW. The Riyadh-based company confirmed that the Saudi Power Procurement Company (SPPC) has granted the Commercial Operation Certificate for all sections of the project, totaling 2,060 MW. Located approximately 80 km south of Jeddah in Makkah Province, the Al Shuaibah 2 plant follows the 600-MW Al Shuaibah 1 project, which went online in November 2024. Financial closure for both projects was achieved in 2023, with ACWA Power holding a 35.01% stake.

The Al Shuaibah projects, valued at USD 2.37 billion, are co-owned by ACWA Power, the Public Investment Fund's subsidiary Badeel, and SPPC, which also serves as the power off-taker. ACWA Power's consortium partners include Badeel with a 34.99% interest and SPPC with a 30% shareholding. In addition to its solar ventures, ACWA Power has recently secured an agreement to develop a 2-GW wind project in Egypt, further expanding its renewable energy portfolio in the region.

What are the key details of ACWA Power's Al Shuaibah 2 solar plant launch?

• Project Capacity and Location: The Al Shuaibah 2 solar photovoltaic plant has a capacity of over 2 GW and is located approximately 80 km south of Jeddah in Makkah Province, Saudi Arabia.
• Commercial Operations: The plant has commenced commercial operations, with the Saudi Power Procurement Company (SPPC) granting the Commercial Operation Certificate for all sections of the project, totaling 2,060 MW.
• Project Timeline: The Al Shuaibah 2 plant follows the 600-MW Al Shuaibah 1 project, which became operational in November 2024. Both projects reached financial closure in 2023.
• Ownership Structure: The Al Shuaibah projects are valued at USD 2.37 billion and are co-owned by ACWA Power, the Public Investment Fund's subsidiary Badeel, and SPPC. ACWA Power holds a 35.01% stake, Badeel has a 34.99% interest, and SPPC holds a 30% share.
• Power Off-taker: SPPC serves as the power off-taker for the Al Shuaibah projects, ensuring a stable demand for the electricity generated.
• Consortium Partners: ACWA Power's consortium partners for the project include Badeel and SPPC, highlighting a collaborative approach to renewable energy development in the region.
• Expansion in Renewable Energy: In addition to the Al Shuaibah solar projects, ACWA Power is expanding its renewable energy portfolio with a recent agreement to develop a 2-GW wind project in Egypt, demonstrating its commitment to diversifying energy sources in the region.
• Strategic Importance: The Al Shuaibah 2 solar plant is part of Saudi Arabia's broader strategy to increase its renewable energy capacity and reduce reliance on fossil fuels, aligning with the country's Vision 2030 goals.
• Economic and Environmental Impact: The project is expected to contribute significantly to the local economy by creating jobs and supporting sustainable development, while also reducing carbon emissions by providing clean energy.