Egypt's largest wind farm, Gulf utility acquisition, Saudi power cooperation, ACWA Power multi line expansion

Saudi Arabia's renowned developer of renewable energy, green hydrogen, and seawater desalination, ACWA Power, has once again demonstrated its expansion capabilities in the global renewable energy and utility markets, with three cities in a short period of time and a total project investment of over 6 billion US dollars.

Egypt: $2.3 billion investment in Africa's largest wind power project, ACWA Power expands its renewable energy footprint

ACWA Power announced a $2.3 billion investment agreement with the Egyptian Electricity Transmission Company (EETC) to build the largest wind power project in Egypt and even in Africa. The wind farm is located in western Egypt with an installed capacity of 2GW, exceeding the scale of the company's current 1.1GW wind power projects in Egypt. The project has signed a 25 year power purchase agreement and is expected to reduce 2.5 million tons of carbon dioxide emissions annually after completion. The Egyptian government has vigorously promoted the development of new energy in recent years, striving to achieve a renewable energy share of 42% by 2035. This investment by ACWA Power not only aligns with Egypt's energy transition strategy, but also further consolidates its influence in the African market.

Gulf market: Acquisition of public utility assets in Bahrain and Kuwait, strengthening regional layout

In addition to investing in wind power in Egypt, ACWA Power has also completed the acquisition of strategic utility assets of French company Engie in Bahrain and Kuwait for approximately $693 million. This acquisition is in line with ACWA Power's long-term growth strategy of enhancing regional energy management capabilities through the acquisition of high-quality assets, expanding stable long-term revenue sources, and taking the lead in the transition from traditional energy markets to sustainable energy.

Deep cultivation in Saudi Arabia: Qurayyah IPP expansion, strengthening strategic cooperation with Saudi Electricity Company

Within Saudi Arabia, ACWA Power continues to deepen its cooperation with the government and utility companies. The company has signed a power purchase agreement with Saudi Electricity Company (SEC) to advance the expansion project of Qurayyah Independent Power Plant. Qurayyah IPP is one of the most important gas-fired power plants in Saudi Arabia. This expansion will include the construction of a combined cycle power plant with an installed capacity of 3010MW and the ability to build carbon capture devices in the future. The total investment of the project is 13.4 billion Saudi riyals, approximately 3 billion US dollars. ACWA Power and SEC each hold 40% of the shares, while the remaining shares are jointly invested by other investors. The project will improve power generation efficiency and energy supply capacity, assist the Saudi government in optimizing the energy structure, and enhance the stability of the power grid.

ACWA Power's Strategic Path: Global Expansion+Energy Transformation

Based on recent transactions, ACWA Power's strategic layout can be summarized into three core directions:

Continuous globalization expansion: Continuously expanding into new energy markets, especially in high growth markets such as North Africa, the Gulf region, and Asia.

Diversified business model: Simultaneously focus on renewable energy, utilities, integrated energy management, smart grid and other fields to create a stable long-term revenue model.

Continuously strengthening the influence of the local market: continue to deeply cultivate the Saudi Arabian market and become a core supporting enterprise for the government's energy transformation, while leveraging local experience to replicate successful models overseas.

Cooperation opportunities for Chinese enterprises: how to complement ACWA Power?

With the expansion of ACWA Power in the fields of new energy, energy storage, power trading, and integrated energy management, Chinese companies can seek cooperation opportunities through the following ways:

Equipment and Engineering Cooperation: ACWA Power has been continuously investing in new energy projects such as wind power and photovoltaics in recent years. Chinese companies can enter its supply chain by supplying efficient components, energy storage equipment, smart grid technology, and other means.

Investment Cooperation: ACWA Power's investment scale in international energy projects continues to expand, and Chinese companies can jointly develop projects or provide financial support to enter the Middle East and North Africa markets in a more flexible way.

Green energy technology cooperation: ACWA Power's low-carbon development path is highly compatible with the technological advantages of Chinese enterprises in areas such as hydrogen energy and smart grids. In the future, there may be the possibility of jointly promoting green hydrogen, energy storage and other projects in Saudi Arabia and North Africa.

Overall, ACWA Power's recent three major transactions not only demonstrate its rapid expansion capabilities, but also foreshadow profound changes in the energy markets of the Middle East and North Africa.(This article is from the official website of Jian Dao www.seetao.com. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website strategy column editor/Zhao E