$1.7 Billion, Saudi Arabia is Building The Largest Solar Plant in The Region

Saudi Arabia

The Water and Electricity Holding Company, BADIL, a wholly owned subsidiary of the Saudi Public Investment Fund, and ACWA Power signed an agreement to establish the largest solar power plant in the Middle East and North Africa in Saudi Arabia, with a production capacity of 2060 megawatts, in Shuaiba, in the Makkah Al-Mukarramah region. The value of the contract is $1.75 billion.

It is expected that the project will be operated in phases, the last of which will end in the last quarter of 2025.

According to the agreement, the ownership of the project will be jointly owned by "Badil" and "ACWA Power" companies, at a rate of 50 percent each, by establishing a joint venture company for the development of the project under the name "Second Shuaiba Electric Power Company".

In a statement published on the Saudi Tadawul website, ACWA Power expected that the financial impact would appear after commercial operation, which is expected in the fourth quarter of 2025.

In a related context, the Second Shuaiba Electric Power Company announced the conclusion of energy purchase agreements for the station with the Saudi Energy Procurement Company, as the project is planned to contribute to achieving Saudi Arabia's goals in the renewable energy sector.

On this occasion, Deputy Governor and Head of the Middle East and North Africa Investments Department at the Public Investment Fund, Yazid Al-Hamid, explained that the project represents an important step within the renewable energy program of the Public Investment Fund, which includes developing 70 percent of renewable energy generation capacity in Saudi Arabia by 2030. According to the official Saudi Press Agency, "SPA".

"The service utilities sector and renewable energy is one of the strategic sectors that the Fund focuses on in launching the capabilities of the non-oil sectors to enhance the Kingdom's efforts to diversify sources of income," he said.

For his part, Chairman of the Board of Directors of ACWA Power, Mohamed Abunayyan, affirmed that the Saudi government is moving forward in implementing its plans to diversify the energy mix by moving towards renewable energy sources, indicating that cooperation with "Badil" and the Saudi Company for Energy Purchase, to implement this The project will serve as a new reference project for the development of sustainable energy at the regional level.

He explained that BADIL and ACWA Power will build, own and operate the second Shuaiba station and sell electricity through it to the Saudi Company for Energy Purchase. When fully completed, this station will supply 350,000 housing units with electricity.

It is noteworthy that the second Shuaiba station is the sixth solar power station of ACWA Power in Saudi Arabia, while the portfolio of ACWA Power projects locally includes 13 stations for electricity generation, water desalination and green hydrogen production. BADIL and ACWA Power are also operating. On the development of the Sudair Solar Project with a production capacity of 1,500 MW, which is the cornerstone of the Public Investment Fund's commitment to developing renewable energy projects.