A strategic step towards achieving Vision 2030
In a significant achievement reflecting the rapid pace of clean energy transition in Saudi Arabia, ACWA Power, a leading developer, owner, and operator of power generation and desalination plants, announced the financial close of seven major renewable energy projects, with total financing of SAR 22.3 billion (USD 5.95 billion). This milestone is a key pillar in achieving the goals of Saudi Vision 2030 and the Green Saudi Arabia initiative, which aims to diversify the Kingdom’s energy mix and achieve a 50% share of renewable energy in total production by 2030.
This financial closing represents a milestone in the National Renewable Energy Program, and underscores the attractiveness of the Kingdom’s investment environment and its ability to attract substantial funding from local and international banking alliances, reflecting global confidence in the strength of the Saudi economy and its ambitious future vision for the energy sector.
Details of projects and strategic partnerships
The seven projects, spanning wind and solar photovoltaic energy, cover diverse geographical areas across the Kingdom, ensuring a more sustainable and reliable energy grid. These projects were developed through a strategic partnership between ACWA Power (35.1%), Badeel, a wholly owned subsidiary of the Public Investment Fund (34.9%), and Saudi Aramco Energy (30%).
Wind energy projects:
The company announced the financial closing of its “Sitara” and “Shaqra” wind power projects in the central region, with a combined production capacity of 3,000 megawatts. Financing for these two projects amounted to SAR 5.44 billion (USD 1.45 billion) for a period of approximately 27 years, secured from a consortium of leading international and local banks.
Solar energy projects:
The company also achieved financial closure for five major photovoltaic solar power projects: Afif 1, Afif 2, Al-Hamij, Bisha, and Al-Khulais, located in the central, western, and southern regions of the Kingdom. The total financing for these projects amounts to SAR 16.9 billion (USD 4.5 billion), with a repayment period of approximately 27 years. The financing was secured through a broad consortium of local, regional, and international banks.
Economic and environmental importance
The importance of these projects extends beyond simply increasing clean energy production capacity; it encompasses broad economic and environmental dimensions. Domestically, the projects will create thousands of jobs during the construction and operation phases, reduce reliance on fossil fuels for electricity generation, free up more oil for export, and boost government revenue. They will also play a pivotal role in reducing carbon emissions and improving air quality, in line with the Kingdom's international climate commitments.
At both the regional and international levels, these projects solidify Saudi Arabia's position as a global hub for renewable energy and offer a successful model for countries in the region on how to transition from an oil-dependent economy to a diversified and sustainable one. Furthermore, the volume of foreign direct investment attracted by these projects reinforces the Kingdom's standing as a reliable global investment destination in future-oriented sectors.
