Saudi Arabia secures finances for 5.5 gigawatts solar projects

Dubai: Saudi Arabia’s developers of solar power projects secure financing totalling $3.2 billion (Dh11.5 billion) with an output capacity of 5.5 gigawatts (GW).

Acwa Power, along with Water and Electricity Holding Co (Badeel), a company owned by the Public Investment Fund (PIF), and Saudi Aramco Power Co (Sapco), a subsidiary of Aramco, have reached financial closure for the Haden, Muwayh, and Al Khushaybi projects,

A consortium of banks, including Banque Saudi Fransi, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank, Emirates NBD, First Abu Dhabi Bank, and HSBC, has provided $2.5 billion (Dh9 billion) in funding.

The Haden and Muwayh plants, each with a capacity of 2 GW, are situated in the Mecca region, while the 1.5 GW Al Khushaybi plant will be constructed in the Qassim region. Commercial operations for these projects are anticipated to commence in the first quarter of 2027.

The state-owned Saudi Power Procurement Company (SPPC) signed power purchase agreements for all three projects in June.

Currently, Acwa Power’s solar portfolio in Saudi Arabia comprises 14 projects, with a total capacity exceeding 17.8 GW.

In June, Saudi Arabia announced the awarding of 21 renewable energy projects that will generate over 19 GW as part of its National Renewable Energy Programme.