Saudi Arabia's energy sector has made significant progress. Saudi International Power and Water Company (ACWA Power), together with Badeel, a subsidiary of Saudi Public Investment Fund, and SAPCO, a subsidiary of Saudi Aramco, has signed a $8.3 billion power purchase agreement with Saudi National Electricity Procurement Company to jointly develop seven renewable energy projects with a total installed capacity of 15GW.

This signing includes five photovoltaic power plants and two wind farm projects, located in multiple strategic regions of Saudi Arabia:

Photovoltaic project (total installed capacity of 12GW):

Afif1: 2000MW

Afif2: 2000MW

Humaij: 3000MW

Bisha: 3000MW

Khulis: 2000MW

Wind power project (total installed capacity of 3GW):

Starah Wind Power Project: 2000MW, located in the southern part of Riyadh Province

Shaqra Wind Power Project: 1000MW, located in the northern part of Riyadh Province

According to the agreement, seven projects will establish project companies, jointly owned by Saudi International Power and Water Company (holding 35.1% of the shares), Hydroelectric Holdings Company (holding 34.9% of the shares), and Saudi Aramco Power Company (holding 30% of the shares). The project scope covers the entire chain of development, financing, construction, ownership, and operation, and is expected to be put into operation gradually from the second half of 2027 to the first half of 2028. This signing brings the total number of renewable energy projects of Saudi International Power and Water Company in Saudi Arabia to 21, with a total installed capacity exceeding 34GW. The company's global total installed capacity of renewable energy has reached 51.9GW, with total managed assets exceeding $100 billion and business coverage in 14 countries and regions.

The total scale of renewable energy projects currently being promoted through cooperation between Saudi Public Investment Fund, Saudi International Electricity and Water Company, and Saudi Aramco Power Company has reached 28.6GW, with a total investment of over 17 billion US dollars (approximately 63.75 billion Saudi riyals). These projects include multiple large power plants such as Haden, Muwayh, and Al Khushaybi, aimed at promoting the development of Saudi Arabia's private economy through local supply chain participation.

Since its establishment in 2004, Saudi International Power and Water Company has focused on the development of seawater desalination and cogeneration independent power generation projects. Since 2011, we have transformed into a professional renewable energy developer by participating in international projects in South Africa, Morocco, and other countries. After Saudi Arabia launched its national renewable energy plan in 2017, the company became a major participant.

It is worth noting that the Saudi Public Investment Fund has been investing in Saudi International Electricity and Water Company since 2013, and its shareholding ratio increased to 50% in 2020, making it a national champion enterprise with state-owned background. Although the controlling stake belongs to the Saudi Public Investment Fund, the company is still managed by the founding family, the Abunayan family, with a dual mission of national development and international expansion.

Mohammed Abunaan, Chairman of Saudi International Power and Water Company, admitted that the annual development scale of over 10GW poses significant challenges to the company's management, supply chain, and financial capabilities. While maintaining its professional developer positioning, the company needs support from all parties more than ever before.

This large-scale project signing marks a solid step forward for Saudi Arabia on the path of energy transition, reflecting the synergistic effect of national capital and professional enterprises, as well as Saudi Arabia's firm determination to achieve carbon neutrality goals. With the advancement of these projects, Saudi Arabia's renewable energy industry will usher in a new round of rapid development. (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 new energy column editor/Yang Beihua