ACWA Power, the Water and Electricity Holding Company (Badeel), and Saudi Aramco Power Company (SAPCO), are to invest more than $8bn to develop 15GW of renewable energy projects in Saudi Arabia.
The projects consist of five new solar photovoltaic plants and two large-scale wind farms with a total capacity of 15GW.
The three parties have signed power purchase agreements with the Saudi Power Procurement Company (SPPC) as the procurer and off-taker for the for the projects, located across Saudi Arabia.
With a total investment value of approximately $8.3bn (more than SAR 31bn), the seven new projects will comprise 12GW of solar capacity and 3GW of wind energy.
The projects form part of Saudi Arabia’s National Renewable Energy Programme, led by the Ministry of Energy.
The five new solar projects are Bisha (3GW) in Asir province; Humaij (3GW) in Madinah province; Khulis (2GW) in Makkah province; and Afif1 (2GW) and Afif2 (2GW), both located in Riyadh province.
The wind power plants are Starah (2GW) and Shaqra (1GW), both in Riyadh province.
The projects will be jointly owned by ACWA Power, Badeel, a wholly owned company of PIF, and SAPCO, a wholly owned subsidiary of Aramco.
They are expected to become operational between the second half of 2027 and the first half of 2028. Financial close is expected by the third quarter of 2025.
ACWA Power chief executive Marco Arcelli said: “This landmark agreement represents a significant milestone in Saudi Arabia’s strategic vision for a more resilient and more sustainable energy landscape, underscoring the nation’s steadfast commitment to achieving its ambitious renewable energy targets.
“As the largest and most comprehensive agreement to date under the National Renewable Energy Programme (NREP), it reflects our dedication to collaborate with the Saudi Power Procurement Company (SPPC), PIF and Aramco as we collectively advance this step shift towards a more sustainable energy future.”
Sultan AlNabulsi, acting chief executive at Badeel, said: “The agreement is a continuation of Badeel’s efforts, as an anchor sponsor under PIF to achieve its commitments in the renewable energy sector across Saudi Arabia, and contributing to unlocking the potential of this strategic sector across the entire supply chain.
“This investment will enhance the resilience of the energy sector nationally, positively impacting all other vital sectors of the national economy, and increasing the country’s investment attractiveness.”
Waleed Al Saif, Aramco senior vice president of new energies, said: “We are delighted to expand our footprint in the renewables business through our subsidiary, SAPCO. In partnership with ACWA Power and Badeel, we are helping build Saudi Arabia’s renewable energy infrastructure. In doing so, we are laying the foundations for a more sustainable power network.”