ACWA Power inks deals for 5.5 GW of solar in Saudi Arabia

Saudi electricity producer and water desalination company ACWA Power Co (TADAWUL:2082) has secured a deal to develop, construct, and operate three solar projects in Saudi Arabia, totalling 5.5 GW of capacity, and supply the generated power to the national grid.

The Riyadh-based developer has signed power purchase agreements (PPAs) with the Saudi Power Procurement Company (SPPC) for the three projects -- 2-GW Haden, 2-GW Muwayh, and 1.5-GW Al Khushaybi.

The levelised cost of energy (LCOE) for the Haden plant is USD 0.0158 per kWh while for Muwayh and Al Khushaybi, it stands at USD 0.0160 per kWh and USD 0.0167 per kWh, respectively.

The three contracts are worth SAR 12.3 billion (USD 3.28bn/EUR 3.06bn) in total and have a term of 25 years, ACWA Power said today in a stock market filing.

The large-scale solar plants will be located in the western and northern regions of Saudi Arabia and are expected to go online by the first half of 2027.

Badeel, a wholly owned company by Saudi Arabia's Public Investment Fund (PIF), owns a 34.9% equity stake in each of the three project companies.

The announcement of the three deals comes only a few months after ACWA Power secured financing for the construction of three large-scale solar projects in the Kingdom with a combined capacity of 4.55 GW and an aggregate investment cost of USD 3.4 billion.

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