Saudi Arabia's Rabigh 2 Solar Project Secures $220M Financing

• Aljomaih and TotalEnergies power up Saudi Arabia with Rabigh 2 solar project, energizing 53,000 homes and cutting 500,000 tonnes of CO₂ annually.

A consortium led by Aljomaih Energy & Water Company, in partnership with TotalEnergies Renewables SAS, has reached financial close on the 300-MW Rabigh 2 solar power project in Saudi Arabia, valued at SAR 825 million (USD 220 million). The project, structured as a build–own–operate initiative, will sell electricity to the Saudi Power Procurement Company under a 25-year agreement. The financing was secured through a four-bank consortium, indicating growing lender interest in Saudi solar projects as regulatory frameworks improve.

Construction of Rabigh 2 is set to begin in the second half of 2025, with grid connection expected in 2026. The plant will generate enough clean energy for approximately 53,000 homes, reducing CO₂ emissions by an estimated 500,000 tonnes annually. This project aligns with Saudi Vision 2030, aiming to increase renewable energy to 50% of the power mix by 2030. TotalEnergies CEO Patrick Pouyanné emphasized the project's role in expanding their renewable portfolio, while Aljomaih Energy & Water aims to leverage local expertise alongside TotalEnergies' global solar capabilities.

How does the Rabigh 2 project align with Saudi Vision 2030 renewable energy goals?

• Contribution to Renewable Energy Mix: Rabigh 2 supports Saudi Vision 2030's goal of achieving 50% renewable energy in the national power mix by 2030, directly contributing to the diversification of energy sources.
• Reduction of Carbon Emissions: By reducing CO₂ emissions by approximately 500,000 tonnes annually, the project aligns with the environmental sustainability objectives of Vision 2030, which include reducing the carbon footprint and promoting cleaner energy solutions.
• Economic Diversification: The project is part of broader efforts to diversify the Saudi economy away from oil dependency, a key pillar of Vision 2030, by investing in renewable energy infrastructure and creating new economic opportunities.
• Local and International Collaboration: The partnership between Aljomaih Energy & Water Company and TotalEnergies exemplifies the Vision 2030 strategy of fostering international collaborations while leveraging local expertise to build a robust renewable energy sector.
• Job Creation and Skill Development: The construction and operation of Rabigh 2 are expected to create jobs and enhance skill development in the renewable energy sector, supporting Vision 2030's aim to increase employment and develop human capital.
• Technological Advancement: By incorporating advanced solar technologies, the project aligns with Vision 2030's focus on innovation and technological advancement in the energy sector.
• Regulatory Framework Improvement: The successful financial close and lender interest in Rabigh 2 reflect improvements in Saudi Arabia's regulatory framework, which is a Vision 2030 objective to create a more attractive investment environment for renewable energy projects.