In the wave of global energy transition, Saudi Arabia's clean energy layout has added another heavyweight benefit. Saudi energy giant ACWA Power, in collaboration with Badeel, a subsidiary of Saudi sovereign fund PIF, and Saudi Aramco Power Company (SAPCO), has officially announced that it has completed nearly $6 billion (approximately $5.95 billion) in senior debt financing for a renewable energy project with a total installed capacity of 15GW, marking the substantial progress of this leading wind and solar project in the Middle East region.

As a core component of Saudi Arabia's National Renewable Energy Plan, this project cluster covers 5 photovoltaic projects and 2 wind power projects, with a total investment of 31 billion Saudi riyals (approximately 8.2 billion US dollars), distributed in multiple regions including Asir, Medina, Mecca, and Riyadh provinces in Saudi Arabia. Among them, the total capacity of photovoltaic projects reaches 12GW, including key bases such as Bisha Photovoltaic Park and Humaiji Photovoltaic Park; The total amount of wind power projects is 3GW, including the 2GW wind farm in Hegeistra and the 1GW wind farm in Shagela. Chinese companies such as Goldwind Technology will provide core equipment and operation and maintenance services for the wind power projects. China Energy Engineering Corporation and China Power Construction Corporation have also been deeply involved in the EPC construction of multiple photovoltaic projects.

This financing can be regarded as a collective endorsement of Saudi Arabia's new energy prospects by international capital, attracting 29 financial institutions from the Gulf region, Europe, China, and Japan to participate. The active involvement of Chinese banks such as Bank of China, Industrial and Commercial Bank of China and China Construction Bank has become one of the highlights of financing, which not only reflects the deep cooperation between China and Saudi Arabia in the energy field, but also injects substantial momentum into the docking of the "the Belt and Road" initiative and Saudi Arabia's "2030 Vision". This loan has a term of 27 years, setting a new record for financing terms of similar projects and demonstrating the market's firm confidence in the long-term stability of project returns.

The project adopts a "national level risk sharing" equity structure, jointly held by ACWA Power, Badeel, and SAPCO, and has signed a 25 year power purchase agreement with Saudi Power Procurement Company (SPPC) to provide long-term guarantee for project revenue. According to the plan, all projects will be put into operation gradually from the second half of 2027 to the first half of 2028. After being put into operation, it will significantly increase the proportion of renewable energy in Saudi Arabia's power structure, providing strong support for the country to reduce its dependence on the oil economy and achieve its goal of economic diversification.

As a leading enterprise in the global energy transition field, ACWA Power's financing landing is an important measure for it to implement Saudi Arabia's "2030 Vision". Since its launch in 2016, this vision has achieved significant results in economic diversification and sustainable development, with non oil industries accounting for 59% of Saudi Arabia's economy by 2023. The promotion of the 15GW wind and solar power project will not only bring clean and stable electricity supply to Saudi Arabia, but also promote the technological landing and talent cultivation of the wind power and photovoltaic industry chain, accelerate the country's transformation into a "global clean energy hub", and set a benchmark for energy structure adjustment in the Middle East region.Editor/Bian Wenjun