On July 14, 2025, the Saudi Ministry of Energy announced a major energy transition breakthrough in Riyadh: witnessed by the Minister of Energy, Prince Abdulaziz bin Salman, the National Development Alliance, composed of ACWA Power, Badeel and Saudi Aramco Power Company, officially signed a power purchase agreement with Saudi Power Procurement Company for seven renewable energy projects, with a total installed capacity of 15GW, which is expected to be put into operation from the second half of 2027 to the first half of 2028. This single-phase development project cluster with a global record scale marks the beginning of a comprehensive acceleration of Saudi Arabia's "Vision 2030" energy transition strategy.

The national team is leading the way in setting a benchmark for energy transition

The five PV and two wind power projects signed this time have a total investment of US$8.3 billion, all of which are jointly developed by Badeel, a subsidiary of Saudi sovereign wealth fund PIF, ACWA Power, a global new energy giant, and SAPCO, a subsidiary of oil giant Saudi Aramco. Among them, the total installed capacity of photovoltaic power plants is 12GW, including the Asir 3GW Bisha project, the Medina 3GW Humaij project, etc.; 3GW of wind power projects, including 2GW Starah project in Riyadh. All projects are scheduled to close in the third quarter of 2025, and their ultra-low bid-winning tariffs highlight Saudi Arabia's cost competitiveness in the field of new energy development.

Build a diversified energy landscape

As the core project of Saudi Arabia's national renewable energy plan, these projects will help the country's non-fossil energy installed capacity jump from less than 1% today to 50% by 2030. ACWA Power CEO Marco Alcelli revealed that the signing of the agreement will expand its renewable energy portfolio in Saudi Arabia to 34GW, and the total scale of global green power development will exceed 51.9GW. It is worth noting that Saudi Aramco is participating in a large-scale wind and solar project for the first time as a SAPCO entity, and the deep synergy between traditional energy giants and new energy companies is reshaping the country's energy industry landscape.

Activate the trillion-level industrial chain opportunities

The project cluster is expected to create tens of thousands of local jobs and drive the implementation of supporting industries such as photovoltaic modules and energy storage systems. The Saudi Ministry of Energy emphasized that through the two-wheel drive of large-scale development and technological innovation, the LCOE of Saudi photovoltaic projects in 2023 will be reduced by 67% compared with 2018, and the benchmark electricity price of 1.26-2.06 cents will further consolidate its position as a global new energy cost depression. With the continuous advancement of 28.6GW of projects under construction, Saudi Arabia is accelerating its transformation from an oil kingdom to a multi-energy power with "solar thermal wind power + green hydrogen".(This article is from the official website of Seetao www.seetao.com. Reprinting without permission is strictly prohibited. Please indicate Seetao.com + original link when reprinting) Seetao.com Strategy Column Editor/Sun Fengjuan