ACWA Power Secures $2.6 Billion for Solar Projects

• ACWA Power secures SAR 9.7 billion for three massive solar plants, driving renewable energy growth in Saudi Arabia with a total capacity of 5.5 GW.

ACWA Power has secured SAR 9.7 billion (USD 2.6 billion) in funding from a consortium of local and international banks for the construction of three large-scale solar power plants in Saudi Arabia, totaling 5.5 GW in capacity. The projects include the 2-GW Haden, 2-GW Muwayh, and 1.5-GW Al Khushaybi, which will be located in Makkah and Qassim Province.

The financing agreements were signed by project companies Buraiq Renewable Energy, Moya Renewable Energy, and Nabah Renewable Energy, with ACWA Power holding a 35.1% stake in each. Major banks involved in the financing include HSBC, Emirates NBD, and Standard Chartered. The projects' levelized cost of energy (LCOE) is competitive, with Haden at USD 0.0158 per kWh and the others slightly higher.

What are the key details of ACWA Power's solar project funding in Saudi Arabia?

Here are the key details of ACWA Power's solar project funding in Saudi Arabia:

- Total Funding Amount: ACWA Power has secured SAR 9.7 billion (approximately USD 2.6 billion).

- Consortium: The funding comes from a consortium of both local and international banks, enhancing the project's financial backing and credibility.

- Project Capacity: The planned solar power plants will collectively generate 5.5 gigawatts (GW) of renewable energy.

- Specific Projects:
- Haden Solar Project: 2 GW capacity, located in Makkah Province.
- Muwayh Solar Project: 2 GW capacity, also situated in Makkah Province.
- Al Khushaybi Solar Project: 1.5 GW capacity, located in Qassim Province.

- Ownership Structure: ACWA Power maintains a 35.1% ownership stake in each of the three project companies that will execute the respective solar projects—Buraiq Renewable Energy, Moya Renewable Energy, and Nabah Renewable Energy.

- Banking Partners: Significant financial institutions involved include HSBC, Emirates NBD, and Standard Chartered, ensuring diverse and robust financial support.

- Levelized Cost of Energy (LCOE): The projects are expected to achieve a competitive LCOE, with Haden offering USD 0.0158 per kilowatt-hour (kWh), while the other projects have slightly higher costs.

- Strategic Importance: This funding initiative aligns with Saudi Arabia's Vision 2030, which aims to diversify the energy mix and increase the country's reliance on renewable energy sources.

- Timeline and Development: The projects are part of a larger strategy to rapidly expand solar capacity in Saudi Arabia, with construction timelines and operational dates expected to contribute to the immediate availability of renewable energy.

- Technological Innovation: The solar plants are anticipated to employ cutting-edge technology to maximize efficiency and minimize environmental impact, solidifying Saudi Arabia’s position in the global renewable energy sector.

- Employment Opportunities: The projects are expected to create significant job opportunities during the construction and operational phases, contributing to the local economy and workforce development.

- Regulatory Support: The backing of the Saudi government through initiatives and policies supportive of renewable energy projects is crucial for the successful implementation and financing of these large-scale solar facilities.